• Hello Customer - Log in or Register!
Date: 2013-08-05

How you Convert Foreign Currency Transactions into Sterling

There are two standard ways to convert your foreign currency transactions into sterling for VAT purposes.


UK market selling rate

You can use the UK market selling rate at the time of the supply. The rates published in national newspapers are acceptable.


Period rate of exchange

You can use the rates of exchange published by HM Revenue & Customs (HMRC), known as the period rate of exchange. The advantage of these is that you can generally use the same rate for an entire period - usually a calendar month - although you should check to see if there have been any adjustments within the period.


You can use the period rate for all your supplies, or just for a specific type of supply. If you decide to use the period rate just for a specific type of supply, you should make a note of the details in your records. You don't need to tell HMRC. However, if you change your mind at a later date you'll need to get the agreement of the VAT Business Advice Centre for your area.


The rate you use for commercial purposes

You may not want to use one of the above two rates. If you use a different rate for commercial purposes, or a different method of determining a rate, and you also want to use this for your VAT accounting, you may apply in writing to the VAT Business Advice Centre for your area.


When deciding whether to let you use such a rate or method, HMRC will take into account:


whether your proposed rate or method is based on the UK currency market

whether the rate can be verified impartially

how often you will update the rate

You cannot use forward rates, or methods deriving from forward rates.

 

( linda )15 Dec,2011


Previous: Where to go for Help
Next: Invoicing in Foreign Currencies

Hot Products:
Product Model Inside Diameter Outside Diameter Thickness
29420E NACHI 100 210 67
29320EX NACHI 100 170 42
【TradeBearings News Statement】

1.The news above mentioned with detailed source are from internet.We are trying our best to assure they are accurate ,timely and safe so as to let bearing users and sellers read more related info.However, it doesn't mean we agree with any point of view referred in above contents and we are not responsible for the authenticity. If you want to publish the news,please note the source and you will be legally responsible for the news published.
2.All news edited and translated by us are specially noted the source"TradeBearings".
3.For investors,please be cautious for all news.We don't bear any damage brought by late and inaccurate news.
4.If the news we published involves copyright of yours,just let us know.