I received an email from a certain supplier (EU) stating that all vAT is 0% because we purchased with a vAT number. As a result, we received a refund (overpaid vAT). I have repeatedly tried to reverse this correction because vAT must be paid. I have not been successful; they are no longer responding here. Does this mean that I cannot enter all those invoices in the accounts?
Hello,
I assume you are VAT exempt?
If you are VAT exempt, you will indeed have to pay VAT on that purchase. But I understand (because it happens a lot) that the supplier says, here is my invoice with 0% VAT, "sort it out yourself". Unfortunately, that is business as usual.
You can solve this by purchasing as a private person, then they will charge vAT (they have to). But now you are stuck with that invoice with 0% vAT, of course.
You will now have to submit a special vAT declaration, which sucks, I know, but in theory it is required. Normally, you can find a video from this in the learning centre if you search for 'special'. At least, I have it as a VAT-exempted person ;) It's either a special vAT declaration or getting invoices from your EU suppliers with their local vAT rate. Otherwise, you risk getting a letter from the VAT authorities two years later (I've been there myself), which is no fun, having to pay a lot of interest on vAT that I hadn't paid, wrongly.
Hopefully, my explanation is helpful!
I wish my accountant at the time had told me that, but unfortunately he 'forgot' :'(
The invoice corrections were in September, so that means I actually had to submit before 20 October. I was a bit too lax about it, it's also the first time. There's nothing I can do about it now, right? Ultimately, they will only send you a letter to check up on you two years later, so if you make it okay in quarter 4, I think you will have done enough.That's not as 'strict' as a traditional vAT declaration, so I think the same year is definitely okay!
I had already asked via Intervat and they confirmed that I can just submit it. It's all sorted now. Thank you for your answer and help.
You really should try it out for yourself. Even if you don’t have a company number yet, you can already go ahead.
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