zero-rated intra-EC comment on Invoice

[Golf Tee Warehouse]

I have always been a non-VAT registered company but will now be VAT registered from 1st August 2013 and currently reading up on the various intricacies of the VAT system.

One issue I came across from section 16.16 from HMRC notice 725 regarding what information needs to be included on the VAT invoice when making supplies to another EC country and wish to zero-rate the supply to a customer registered for VAT and has provided a valid VAT number, which states that a reference needs to a appear on the invoice stating that the supply is a zero-rated intra-EC supply of goods.

Is this something that I can do with V9.0.5 or in the latest version as standard, or would it require some custom report work to be done.

I couldn't find a similar question asked in the forums so guess either it can be done easily or automatically or is not something that many others have bothered with.

[Air-Tech]

I don't know if this is of any use or not, but we use the PO field (Misc. tab) to enter the relevant VAT number & statement.

That being said, we don't offer ex VAT sales directly from the site - we did at one point but had too many clowns using any old EU VAT number to reduce their order cost, so it's only done on a per enquiry basis with either a Paypal request, card over phone or card refund used to get the correct totals....

[saucysal]

You don't have to do it

You are not obliged, as far as I can find, to do the reciprocal arrangement. You can charge the VAT and they can claim it back on their VAT return, the same as we do in the UK. This is what we do. That is one way of being sure that they are a genuine VAT registered business without having to have them checked out, and saves completing a EU Sales report to HMRC.

Sarah

[Golf Tee Warehouse]

Thanks for both the suggestions.
I also have serious concerns with allowing customers to self-declare their eligibility for zero-rating the VAT as it is so easy to find a suitable valid VAT number to input, so think I will go with Martins idea of applying it manually requesting customers contact us directly by email or phone to confirm eligibility.
I don't think it will be a major issue for us as most of our products are unlikely to be classed as an allowable business expense for many customers other than other golf shops and retailers, most of whom contact us in advance to enquire about trade/bulk pricing in any case.

You are not obliged, as far as I can find, to do the reciprocal arrangement. You can charge the VAT and they can claim it back on their VAT return, the same as we do in the UK

I also was unable to find a conclusive answer to this as a search of the HMRC website turns up apparent conflicting answers:
1.

If you are registered for VAT in the UK and receive goods from other countries in the EU, technically known as acquisitions rather than imports, you will normally pay VAT at the time the goods come into the UK. The rate of VAT payable is the same rate that you would have paid had the goods been supplied to you by a UK supplier. This VAT is known as acquisition tax and you can normally reclaim this VAT, if the acquisitions relate to VAT taxable supplies that you make.

2.

You cannot reclaim VAT on items that you have bought from suppliers in other European Union (EU) states. You may be able to claim the VAT back from the relevant VAT body in those states.