VAT and UK Purchases

StupidLikeAFox

Howdy all,

We are just going back over our books here and are presented with a situation re VAT paid to UK suppliers.

We registered for VAT in January 2015. Many of our suppliers are based in the UK, so obviously VAT should not have been charged on their purchases from this date. However we have a handful of invoices which included UK VAT at 20% in the January / February period. We were new to the whole VAT thing at that stage and basically put them on our accounts package at 20% VAT.

Basically, if they invoice was for £100 they were adding 20% VAT and we were paying them £120. The £20 VAT was included in our VAT calculations, and as it was early 2015 the VAT has been paid to HMRC at this stage.

Obviously this is not how things should have been done and we will have to file an amended VAT return with Revenue - but how do we deal with it? Can we reclaim the VAT from HMRC, then account for the invoice minus VAT (well, reverse charge) on our side? Or is there some other way of handling this?

dbran

Hi

You can reclaim the VAT via ROS via an Electronic VAT Refund (EVR)

http://www.revenue.ie/en/tax/vat/leaflets/evr-update-2011.html

There are some restrictions so it would only be worthwhile if you have a decent amount of UK vat to reclaim.

Dbran