Creating a Sales of Goods to EU VAT Rate

If you have selected HMRC as your VAT authority , you can create two Sales of Goods to EU VAT rates which use the Sales of Goods to EU VAT treatment.

Sales of goods to EU – use a code with this treatment if you:

• have sold goods to a customer in an EU member state on or before 31 December 2020, or
• are selling goods from Northern Ireland to a customer in an EU Member State from 1 January 2021.

That customer must be registered for VAT for you to use a code with this treatment.

HMRC details their rules in their guidance document Exports, dispatches, supplying goods abroad and charging VAT (external link). Sales of goods to the EU are included in both:

• Box 6 (total value of sales and all other outputs excluding any VAT), and
• Box 8 (total value of all supplies of goods and related costs, excluding any VAT, to EU member states: a) made on or before 31 December 2020 & b) from Northern Ireland to EU Member States made from 1 January 2021).

Note: This treatment relates to goods, not services.

As they are an additional feature of VAT codes, VAT treatments apply at line level.

 

To create Sales of Goods to EU VAT standard rate:

1. On the Set-up menu, click VAT. The VAT Rates window opens.
2. Click in the line above the grid to create a new VAT rate. Enter the following:
   • Rate – SE
   • Name – Sales of Goods to EU (standard)
   • Percentage – the current standard rate
   • Inclusive – clear
   • Used – select
   • VAT treatment – Sale of goods to EU.
3. A message, "Please verify you need to use this functionality as it only relates to EU trading and Northern Ireland," is displayed. If you are not sure if you need to use this VAT treatment, please contact your accountant or HMRC.
4. Click Confirm.

To create Sales of Goods to EU VAT zero rate:

1. On the Set-up menu, click VAT. The VAT Rates window opens.
2. Click in the line above the grid to create a new VAT rate. Enter the following:
   • Rate – ZE
   • Name – Sales of Goods to EU (zero)
   • Percentage – 0
   • Inclusive – clear
   • Used – select
   • VAT treatment – Sale of goods to EU.
3. A message, "Please verify you need to use this functionality as it only relates to EU trading and Northern Ireland," is displayed. If you are not sure if you need to use this VAT treatment, please contact your accountant or HMRC.
4. Click Confirm.

See Also