Are you purchasing goods or services from a supplier outside the EU while being registered as self-employed? Here’s how to properly record those expenses and ensure you remain VAT compliant.
A. When purchasing goods:
When importing goods from a non-EU country, VAT becomes due upon entry into the European Union. This VAT can be deducted as input tax in your VAT return.
🚨 Important 🚨
To avoid errors when submitting your VAT return, you should record both the supplier’s invoice (without VAT) and the transporter’s invoice (with VAT) in the same VAT declaration.
How do I record my invoices in Accountable?
Import VAT (EUSt) can only be claimed if you arranged the import yourself and are listed as the importer on the customs documents. If the import was handled by a third party (e.g. a marketplace or reseller), you typically cannot deduct the import VAT yourself, as you are not considered the formal recipient of the goods.
In the app, you need to record both the supplier’s invoice (without VAT) and the transporter’s invoice (with VAT).
1. Recording the supplier’s invoice (without VAT):
VAT rate: Select 0%, since the supplier is located outside the EU.
Enter the total amount of the invoice (excluding VAT).
If the invoice was issued in a foreign currency, enter the amount in euros based on the exchange rate on the payment date.
2. Recording the transporter’s invoice (with VAT):
Go to Expenses, click on “Upload new expense” in the top right corner, and select the corresponding document:
Select "Import VAT & other import costs" as the category for the VAT paid at customs:
For this category, enter only the amount paid at customs.
In this example: €421.74:
Other charges must be recorded as separate line items.
You can add these by clicking on "Add other import costs":
Here’s what the complete booking would look like:
💡
You must always apply the corresponding VAT rate to each item, exactly as indicated on the invoice.
Create a separate line for each item listed on the invoice.
Always use the VAT rate shown on the invoice.
Do not combine items with different VAT rates into a single line.
1) Upload the invoice | Go to the Expenses page and click on "Upload new expense" in the top right corner. |
2) Review the invoice | Click on "Review now" once the invoice has been uploaded. |
3) Select a category | Choose "Import VAT & other import costs" as the category. |
4) Add the import VAT amount | Enter the import VAT amount that was paid at customs – in this example, €421.74. |
5) Add additional charges | Add the additional charges as separate line items. In this example: €14.15 including 19% VAT and €64.65 without VAT. |
6) Final check | Double-check the amounts and the selected category. |
7) Save | Save the expense once everything has been filled in and reviewed. |
B. When purchasing services:
If you purchase a service from a supplier outside the EU, no VAT will be charged to you – but you are still required to declare it when submitting your quarterly VAT return. It’s a zero-sum game, so you won’t have to pay anything extra if it’s a 100% business-related expense (the app will calculate everything for you automatically).
Go to Expenses, click on “Upload new expense” in the top right corner, and select the relevant document:
Select the category that matches the type of service. In this example, the correct category would be "Software license":
If the invoice is not issued in euros, select the currency used.
The system will automatically apply the exchange rate valid on the payment date.
For the VAT rate, select 0%. The reason for the absence of VAT is "Purchase from outside the EU:
And that’s it – you can now save the expense.
Step-by-step summary for recording the invoice:
1) Upload the invoice | Go to the Expenses page and click on "Upload new expense" in the top right corner. |
2) Review the invoice | Click on "Review now" once the invoice has been uploaded. |
3) Select a category | Choose the category that matches the invoice. In this example: "Software license". |
4) Foreign currency? | If the invoice is issued in a foreign currency, select the correct one – the system will automatically apply the current exchange rate. |
5) Select VAT rate | For invoices from outside the EU, the correct VAT rate is always 0%. |
6) Choose "Purchase from outside the EU" as the reason. | Choose "Purchase from outside the EU" as the reason. |
7) Save | Save the expense once all information has been entered and reviewed. |
If you need help, you can contact the tax coaches at any time via chat or by email at support@accountable.eu.