EC Suppliers - Reverse Charge

Accounting
1

Hi there,
when creating a new purchase for an EC supplier, the instructions say to include the VAT rate it would be charged at.

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I am a bit confused by that. Does this mean that we select the 20% from the drop down list or in the case of Google Adwords (Ireland) 23% - which is their local VAT?

Thanks in advance!
Rita

2

You need to account for VAT as if you were charged VAT in the UK (20%), it then gets reversed back off again.

I should add I am not an accountant so I would recommend you query this with your own accountant before proceeding.