The VAT Information Exchange System (VIES)
was put in place by the EU and contributes to the effectiveness of the new VAT arrangements.
It provides a mechanism whereby checks can be made in each Member State on the validity of claims to zero-rating VAT and it helps to detect unreported movements of zero-rated goods between Member States.
It enables traders who have doubts about the validity of VAT numbers quoted to them to confirm the VAT registration numbers of their customers in other EU Member States.
For your business it provides a method of breaking down the Goods and Services provided or obtained from other EU countries during the course of business.
VIES on Your Books in Big Red Cloud
This applies to Sales and Purchases from other EU Member States.
When adding a Purchases Book entry change the vat type to Other EU.
When adding a Purchases Book entry change the vat type to Other EU
Under the For Resale and Not For Resale VAT columns you will see the ‘Other EU Analysis’ section appear containing the Goods and Services breakdown entry fields.
Enter your Total and break it down over the appropriate VAT rate.
As Other EU VAT is Notional only the full Gross Total will be entered to this box.
Break down your Total between the Goods and Services boxes as shown to the left and fill your analysis categories as normal.
The steps above will apply equally for Sales Book Entries and Sales Book Invoices as shown below.
While sales book entries have the Goods/Services breakdown on the main screen (the only one) the Sales Invoices have you select whether something is a Good or a Service while adding it to the invoice and the fields on the main screen are filled based on the value of what is entered
VIES for Your VAT Return
On your VAT return you will notice the following details near the end of the report.
This report is available from the VAT menu through the ‘Standard VAT Calculations’ report.
The details listed above will contain the figures required to complete your VAT return.