VAT in Purchases

For creating a purchase (Bills, Expenses, Purchase Order) transaction that is within the United Kingdom,

VAT in Purchases

Purchases from Outside UK

For purchases that are from outside the UK, labels will denote the goods and services. If you are ordering for a service in the same purchase order where items are being purchased from outside the UK, then the service will be associated to the item and will be labelled as Service Associated to Goods. For the EU Countries, VAT for goods and services associated with the goods are called as Acquisition VAT.

Acquisition VAT in Purchases

If there is only a service being rendered from outside the UK, then the VAT associated with the service will be handled as Reverse Charge.

Reverse Charge Handling

Purchase from Non-EU Countries

For the Non-EU Countries, VAT for goods and services associated with the goods are called as Import VAT. This import VAT comes under Input VAT.

While creating a purchase transaction for a vendor who is from a non-EU country, the VAT field will not be editable. Thus the import VAT cannot be added for the transaction on the bill, expense or purchase order created.

Import VAT in Purchases

To record the import VAT, you can create an expense separately by manually calculating the VAT applicable for the goods or services purchased.

Import VAT in Purchases


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