Reports customised for an EC Sale VAT code will show sales created for that code, whether or not the EC Customer selection box was marked on the customer’s card. Reports customised to include an EC Purchase VAT code will show the amount of VAT that you would have paid had you purchased in the UK, calculated using the EC Reported Rate percentage that you entered when creating the VAT code.
The “Less EC Purchase VAT” line below each VAT code’s total subtracts all of the notional entries created by EC Purchases from the totals, leaving you with the amounts you are actually due to pay. After all, you don’t have to pay these amounts - only account for them when reporting VAT to Customs & Excise.
Use this report if you use the cash method of VAT accounting. This method allows you to account for VAT once payment has been received or made and can only be used if you have permission from Customs & Excise.
