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Hi,
One of our employees is on business essential trip in Republic of Ireland. How do I account for VAT his credit card receipts spend on food and petrol he incurrs in Republic of Ireland? We are not looking to reclaim it from Ireland. I would like to know how transactions need to be posted.
I am using Sage 50 Accounts, is it Goods amount in Net column, T1 as normal and zero in VAT?
Thank you so much.
Hi,
As these purchases won’t be imported, they are completely outside the scope of the UK VAT system.
I don’t use Sage, but have found a list of standard codes here: https://gb-kb.sage.com/portal/app/portlets/results/viewsolution.jsp?solutionid=200427112155761&hypermediatext=null. T9 seems to be the most appropriate, you would then need to record the full amount (including the Irish VAT) in a net column. I think that T1 might wrongly imply that you had received the supply of goods in the UK.
The Irish Revenue has guidance on reclaiming VAT here: https://www.revenue.ie/en/vat/repayments-to-unregistered-persons/foreign-traders-and-vat/foreign-traders-established-outside-the-eu-paying-irish-vat.aspx , but the list of items where VAT is not recoverable (as shown in the notes to the claim form) probably covers most of what you’ve bought!
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