International Finance in Plain English

International finance in plain English!

Copyright © FreeAgent Central Ltd, 2012

Who am I?


Who are you?


Zero-rated

Rate of UK

VAT = 0%


Out of scopeUK VAT

does not apply


Sell goods to EUZero-rated if: VAT VAT

numbernumber


Sell goods to EUUK VAT if: I’m not a I’m not a

businessbusiness

My My business is business is not VAT-not VAT-

registeredregistered

or


Sell goods to EU

EU VAT?Distance sales limits at

http://www.tmf-vat.com/vat/distance-selling-eu-vat-thresholds.html

e.g. Ireland €35,000




Sell goods outside EU

Zero-rated if:

< 3 months


Buy goods from EU

- Boxes 2 (and 4) - Boxes 7 and 9


Buy goods outside EU

- Box 4 - Box 7


Sell services overseas

=

=



=

Out of scope of UK VAT

Local VAT may apply

http://www.tmf-vat.com/vat/eu-vat-rates.htmlCopyright © FreeAgent Central Ltd,

2012

http://www.tmf-vat.com/vat/eu-vat-rates.html


= xOut of scope

of UK VAT

http://www.tmf-vat.com/global-vat.html

Local VAT may apply


http://www.tmf-vat.com/global-vat.html


=

UK VAT



=

Check business status if supplied electronically

http://ec.europa.eu/taxation_customs/vies/vieshome.do


http://ec.europa.eu/taxation_customs/vies/vieshome.do

Buy services overseas

1) VAT output tax: full value x 1/62) Boxes 1 and 43) Full value into boxes 6 and 7?


Foreign currency


Currency invoices

Net and VAT

= ?Copyright © FreeAgent Central Ltd,

2012

Taking payment


Making payment

?Copyright © FreeAgent Central Ltd,

2012

Currency example

€1 = £0.870 30/09/2012

€1,000 = £870

€1 = £0.876 31/10/2012

€1,000 = £876


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International finance in plain English.

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International Finance in Plain English