I’m reading this andit says that right now I need to do manual calculations when buying services from EU suppliers. But it also says that this should be updated in 2016. We’re in 2017. Has it been done? How can I handle it?
We’ve got a lot of reverse charged payments. If we need to track them all manually and update our VAT return accordingly, that’s going to be a major headache…
I’m afraid at the moment we are holding out on any further development around the handling of EC Reverse Charges. It is a change that will add quite a bit of extra complexity to our system and given the likelihood now that the UK will eventually withdraw from this scheme we felt that this may not be the best use of our resources.
One thing we did consider is an account level default to treat all EC acquisitions as either services or goods. This will certainly save some time for those dealing exclusively in one or the other.
If you could do the account level default to either goods or services, then that would be good for me.
I don’t buy or sell any goods in the EU, but I have ebay fees to account for which are services, and I could default to services for those transactions.
At the moment those ebay fees are treated as goods and so I have to make adjustments to my VAT calculations, and I’d rather not have to do that.
Same here. We’re 100% services, bought and sold, so being able to switch this account wide would be sufficient for us.
@QFMathew Understand the potential brexit mess, etc, but what’s the suggested workaround? It seems like I almost need to do my VAT accounting manually. Is there a trick that I’m missing? Or a guide somewhere on how to do this? I guess we could use a tag somehow to get a quick count of the numbers.
As I currently understand it, it seems like a fundamental flaw in the system, rather than an optional enhancement. Submitting accurate VAT returns feels like a core feature… 
A supplier-level default would be ideal. In my case we buy goods from suppliers in Germany and also pay Stripe fees which need to be reverse charged. I currently treat them all as acquisitions in QuickFile but use a project tag on the service ones so I can find them to adjust at VAT return time, but it’d be much easier if it was automatic. The adjustments aren’t complex and don’t affect the VAT due - the only difference is that the VAT goes in box 1 rather than 2 and the net in 6 rather than 9.
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