VAT Rate Options on USD Purchases - Sage

wandererz

I have expenses incurred by a director.
It is IT related for an online service (call forwarding service via the website).

It is from a California based US Company and is in USD so there is no VAT charged on the expense receipt.

How do i record this in my accounting system (Sage Online) in terms of VAT.

This is what the Sage system has to say:

"You can use 'No VAT' if your supplier is not VAT registered, as they can’t charge you VAT.

Do not use 'No VAT' for overseas purchases - instead, enter the supplier’s address and any VAT number on their record.
Enter the VAT rate charged, and the Reverse Charge mechanism means the VAT value is cancelled out on your return."

In this case, the US provider is not VAT registered.

The options i have available are:

- Standard 23%
- Reduced rate 13.50%
- Second Reduced Rate 9%
- Zero Rated 0%
- Exempt 0%
- No VAT

heretothere

Reverse charge is for purchases from other EU countries.

Put it in as not VAT code T9 on my sage.

eusap

I just checked a US Vendor in my Sage Online, when creating the vendor I entered the US address. When posting the supplier invoice the system proposes the zero rated code