I have purchased some software licenses from the Czech Republic and I am unsure how to allocate them within Solar Accounts. The licenses are delivered electronically so there are no physical goods as such.
The invoice has come to me with 0% VAT shown as I was expecting.
Within SA do I allocate this as 'purchase of goods from EU supplier' or 'purchase of services from EU supplier' ?
Is there anything else I need to be aware of ?
Hi Mark,
Software licences are considered a service, so set the VAT Treatment to 'Purchase of Services from EU Supplier'.
Solar Accounts will apply the reverse charge rule, so the VAT amount will appear in both Box 1 and Box 4 of your VAT return. See this page for details on the reverse charge rule:
http://www.hmrc.gov.uk/vat/managing/international/imports/importing.htm#3
Regards
