How to record purchasing Bokio price plan

The price plan will be billed from Bokio Group AB, which is a Swedish Limited company. Due to this there will not be any VAT added to the price plan. This is because the place of supply is considered to be within the UK but the supplier is based outside of the UK.

This means that, as a Bokio customer, you must account for both the sales VAT and purchases VAT as per this page on HMRC.

You can find the receipt for your purchase by going to Settings → Billing of Bokio services.

We have added a smart bookkeeping template to record the Bokio price plan.

If your business is VAT Registered this template will be recorded as shown below. This will therefore appear in boxes 4 and 1 on the VAT Return, which will ultimately not affect the liability due to HMRC.

If your business is not VAT registered then the journal entry will be much simpler as there is no VAT reporting required, as shown below.