How to encode my expenses within the European Union ?

Everything you need to know about your purchase invoices inside the European Union

Romain avatar
Written by Romain
Updated over a week ago

Do you buy goods or services outside the country where you are registered as a self-employed? Is your supplier registered in a European Union country?

⇒ We'll show you how to encode your purchases from European suppliers (self-employed or companies).

How do I encode my purchases from suppliers based in the European Union?

Sales and purchases between self-employed or companies within the European Union are subject to the intra-European reverse-charge regime. This means that as a client, you do not owe VAT to the administration of the country where your supplier is based and as a supplier you do not charge VAT of your country to your clients within the EU and.

Specifically, when you encode a purchase invoice under the reverse-charge regime, it will have your VAT number, and the merchant will charge you goods excluding VAT. Your merchant can check the validity of your VAT number on the VIES tool of the European Union.

How does it work in the Accountable app?

  • Add an expense (Expenses > Add an expense > select document > Review now)

  • Indicate the supplier's provenance → Select "🇪🇺 No, but the supplier is from inside the EU".

When you want to add an expenditure made with a supplier from a country of the European Union in the app, by clicking on the flag next to "Merchant", you will have 3 options:

a) 🇧🇪 Yes, the supplier is Belgian

b) 🇪🇺 No, but the supplier is from inside the EU

c) 🌍 No, the supplier is from outside the EU

  • Specify VAT information

You'll have to answer 2 question:

⇾ "Is there VAT on this document?"

  • If "yes", you can claim a Foreign VAT refund, more info in this article.

  • If "no", you won’t need to worry about VAT 😀.

⇾ "What VAT rate would apply for this purchase in Belgium"

  • Select the corresponding rate that would apply in Belgium :

If you have paid foreign VAT on your purchase, please answer yes and consult this article to get the VAT back.

  • Example on Accountable web

Implications for your tax returns

1- VAT return

Note that you can find in your VAT declaration the amount of your purchases of goods on intra-EU reverse-charge (grid 86), the amount of your purchases of services on intra-EU reverse-charge (grid 88) as well as the VAT due on purchases on intra-EU reverse-charge (grid 55).

It's a zero-sum game, so you don't have to pay anything extra for a 100% professional expense (the app does all the calculations for you).

→ For miscellaneous goods & services:

  • For purchases of goods → Grid 86 - In­tra-EU reverse-charge pur­chas­es of goods:

  • For purchases of services → Grid 88 - Intra-EU reverse-charge purchases of services:

  • Whether for purchases of goods or services, the amount paid will also appear in grid 82 - Miscellaneous goods & services:

  • In grid 55 - VAT due on intra-EU reverse-charge purchases:

  • In grid 59 - Deductible VAT on purchases:

→ For purchases of goods / raw materials for resale

  • In grid 81 - Raw materials and goods for resale:

  • In cell 86 - Intra-EU reverse-charge purchases of goods:

    ⇒ The VAT amount will also appear in cell 55 - VAT due on intra-EU reverse-charge purchases and cell 59 - Deductible VAT on purchases

2- Income tax return

The amount exclusive of VAT (here €100.30) will be deducted in proportion to the % of professional use.

💡 If you have any questions, please feel free to contact us via chat or by email to the following address: support@accountable.eu

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