Ct. has two VAT registrations within the EU in different countries, primary one in the accounting currency EUR, and the secondary in the UK so each VAT registration is in a different currency. UK Vendors invoice in EUR to avoid currency exposure.
UK VAT return must reclaim inputs in GBP at the same value as the output tax reported by the supplier, but, with invoices in EUR, there is nowhere to record the input tax in GBP.
VAT calendars are diverse too.
Ideally VAT settlement should be in GBP and any difference in EUR written off to FX.
Vendors invoicing in GBP would help but not a great deal as VAT return will still be accounting in EUR.
Has anyone met this sort of situation before?