x Want to participate? Join the group to interact
  • State Suggested Answer
  • +1 person also asked this people also asked this
  • Replies 5 replies
  • Answers 1 answer
  • Subscribers 30 subscribers
  • Views 214 views
  • Users 0 members are here
Browse Forums
Announcements
73
topics
0
replies
Making Tax Digital
37
topics
47
replies
Sage Accounting General Discussion
1k
topics
2k
replies
Sage Accounting Start General Discussion
168
topics
280
replies
Sage Individual General Discussion
19
topics
34
replies
Rebecca Redd

US Supplier invoice with EU VAT number

SUGGESTED
Posted By

Based on Ireland, we purchase software licenses from several US suppliers who are registered for EU VAT and charge EU VAT on their invoices using a VAT number with the prefix 'EU'.

Sage One does not permit me to enter any VAT number for a US-based contact. Even if I change the supplier country, the VAT number prefixes are restricted for each country choice so there is no way for me to enter an EU VAT number against these suppliers, as far as I can see.

How can I enter these invoices in Sage to correctly report the VAT as EU VAT?

Thanks

  • 0

    Hi Rebecca,

    Thanks for using Community Hub.

    You would need to setup a new Supplier contact with an EU country selected.  Then you can enter the EU VAT number and correctly account for VAT. 
    I'm afraid you can't change the country for a contact if you already have transactions or invoices entered against them. 

    If this helps, please select Verify Answer.

    Regards,
    Steven Kay
    Sage UKI

  • 0 in reply to Steven Kay

    Hi Steven,

    Thanks for your reply. Unfortunately for me, within Sage supplier contact addresses, each country in the EU has it's own VAT number prefix. So 'FR' for France, 'DE' for Germany, 'IE' for Ireland, etc. The VAT number the US suppliers use begin with an 'EU' prefix- as in 'EU123456'. There doesn't appear to be any country selection which will allow me to enter this VAT number even though this is a valid and seemingly well-used set up for suppliers from outside the EU, or at least for suppliers of digital products.

    Ideally, Sage would have an 'EU' option in contact addresses to allow for this, or allow VAT numbers to be entered for non-EU suppliers. I have a supplier based in Australia who uses the same mechanism and has an EU VAT number as well.

    Kind regards,
    Rebecca

  • 0 in reply to Rebecca Redd

    Good Morning Rebecca,

    Apologies for the delay in replying to you. 

    I will make some enquiries this morning for you and get back to you as soon as possible. 

    Regards,
    Steven Kay
    Sage UKI

  • 0 in reply to Steven Kay

    Hi Steven,
    Any further info or advice on this issue?
    Kind regards,
    Rebecca

  • 0
    SUGGESTED

    Hi Rebecca,

    Thanks for using Community Hub.

    I'm so sorry for the late reply. I had sent the query to another department but was absent so I missed their reply. 

    You can't add EU VAT numbers I'm afraid. 

    In this instance, you would set up the supplier as US etc and leave the VAT number box empty. Sage Accounting automatically sets the appropriate VAT rate based on what options you select when you create the invoice, and this will also show correctly on the VAT Return. 

    Supply of services, business to business, from a supplier outside of the UK would be classed as reverse charge VAT. The system will account for this and will include it as such on the VAT Return. If you need more support, I would recommend speaking to HMRC or an accountant to confirm. 

    I've also found this on the HMRC community forum that may explain in more detail for you >

    If this helps, please select Verify Answer.

    Regards,
    Steven Kay
    Sage UKI

*Community Hub is the new name for Sage City