Paying VAT when you invoice in Euros

[psychocandy]

I doubt your underpayment will be a significant amount so in that case you are advised to:
1. Make a clear note in your records of why you screwed up to show it wasn't a deliberate mistake.
2. Amend the VAT amounts on your next return to include the underpayment.
3. Pay all the VAT including the underpayment.
4. Say nothing to the VAT man unless they come to do an inspection.

I would also note in your records what you did to ensure you didn't make that mistake again.

Is there a standard format for 'records'?

Should these be board minutes or just a document recording these sort of things?

[psychocandy]

Unfortunately he's looking for a tourist rate, which tends to be less generous than the interbank rate and the rates you can find online.

Yep. Tourist rate on the day seems to be best one to use because it means you get a worse rate i.e. less in sterling and hence less flat rate vat to pay.

Trouble is finding a historical value for this is a bit difficult.

[ASB]

Unfortunately he's looking for a tourist rate, which tends to be less generous than the interbank rate and the rates you can find online.

I doubt he'll find them, I'd just use the HMRC monthly rates and be done with it. So much eaiser. Depends on how one values ones time.

Slightly O/T I had to buy roubles going though AMS on Sunday. Couldn't get Euro 'cos ATM broken so had to use credit card for transaction which meant I got an absolutely crap rate (32 against 40 'on the street'), stiffed for 7 euro commission, will no doubt also get 2.75% on the transaction, plus a cash fee.

As far as I'm concerned it's just the crap I have to deal with, but this way I was absolutely sure I could buy my train ticket when I got here. No idea what I'll be able to claim back from client, but I don't really care. It'll be about right.

[SueEllen]

Is there a standard format for 'records'?

Should these be board minutes or just a document recording these sort of things?

I think you need to go on a VAT course. HMRC provide them free -

HM Revenue & Customs: Business Education & Support Teams Events

There are two on the list that may interest you -
How VAT works
VAT- Trading with other countries

You can ask all the questions you asked here and get the answers from the horses mouth. Plus as you are responsible for doing things the right way not your accountant then you can be sure that you won't get in trouble if you ever have a VAT inspection.

[psychocandy]

I think you need to go on a VAT course. HMRC provide them free -

HM Revenue & Customs: Business Education & Support Teams Events

There are two on the list that may interest you -
How VAT works
VAT- Trading with other countries

You can ask all the questions you asked here and get the answers from the horses mouth. Plus as you are responsible for doing things the right way not your accountant then you can be sure that you won't get in trouble if you ever have a VAT inspection.

SE,

Might do that.

[psychocandy]

SE,

Might do that.

Hmmm. Trying to get on a course but nothing in the near future for my area.

Next months invoice due soon so gonna do it right this time bu putting the sterling equivalent on the invoice. According to this :-

(a) unless you have adopted one of the alternatives set out below, you must use the latest published UK market selling rate at the time of the supply. The rates published in national newspapers will be acceptable as evidence of the rates at the relevant time. This rate is also available by phoning Customs on 01702 366349;

I can use the selling rate. I assume thats euro selling rate, yeh?

OK. According to Natwest todays is 1.2354 which is poor. (although it does say national newspaper so maybe I should buy and keep a copy as proof)

So, on an invoice of, say, 8000E the sterling equivalent is £6475, but if I use the HMRC figure for August (which is 1.1368) its going to be £7037.

13.5% flat rate VAT on that is a difference of £76. Or am I missing something here?

Also, if I put this exchange rate on my invoice, doesn't this restrict the sterling VAT equivalent that the end customer (i.e. agency) can claim back on my invoice? (otherwise if they applied a different rate it'd be HMRC who lose out).