Originally posted by psychocandy
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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).
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