Treatment of EC Sales on Sage
Posted: 23 Apr 2007, 18:23
I've been told that I should use T4 for EC sales. However I'm not sure of this applies to sale of services or just to goods. The inland revenue website is down at the moment!
I think (you should check this with a qualified professional), that T4 is for sales where vat is not charged as you have a valid VAT registration number for the company.
In this case it would only apply to goods as services are always Vatable in the country of origin at the local rate.
i.e. services get 17.5% and are T1, goods (if you have the VAT number) are T4 and have no VAT. If you don't have the VAT number then they are T1 and charged at 17.5%