I have just purchased for my business the Adobe Creative Suite. When i got to the checkout the VAT was taken off when i entered my VAT number. On the invoice it states reverse charge supply - customer to self assess. I am ok with entering VAT purchases, but this one has confused me. Help!
QuickFile doesn’t support the reverse charge at all - if you configure the supplier as VAT registered in an EU state then you will get the option to “apply reverse charge” when entering purchases but despite the name this box does not actually apply the reverse charge (instead it applies the similar but distinct rules for buying goods from an EU supplier).
If you use this tickbox it will put the VAT element into box 2 on your return and the net into box 9, whereas for the reverse charge the vat needs to go in box 1 and the net in box 6, so you will need to make a manual adjustment when you submit your VAT return to correct it - subtract the vat from box 2 and add it to 1, and subtract the net from box 9 and add it to 6.
Thank you, much appreciated
Technically this may not be 100% right if you’re on cash accounting but if the invoice and payment dates are in the same quarter anyway then it makes no odds.
(Goods acquisitions are always recorded on accruals basis even if you’re otherwise on cash accounting, but reverse charge transactions follow the normal rules for whichever scheme you’re on)
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