EC VAT Invoices - Reverse Charge Statement

Feature Request
1

Using the standard sales invoice and ticking the box EC VAT exempt does not seem to fully comply. Can anyone else help?

Under EC law and the VAT Regulations 1995, with effect from 01 January 2013, invoices for reverse charge supplies, when the customer is liable for the VAT, must include the reference ‘reverse charge’.
The precise annotation for reverse charge invoices is not prescribed in law. However, it must include the words ‘reverse charge’. The following examples fulfil the legal requirement:

  • Reverse charge: VAT Act 1994 Section 55A applies
  • Reverse charge: S55A VATA 94 applies
  • Reverse charge: Customer to pay the VAT to HMRC
2

Thank you for bringing this to our attention, we have previously looked at this area and the time recommended that the notes were used to to add the VAT reverse charge annotation. On review, we have decided to update the invoice template to include one of the annotations detailed.

We will update this thread once the changes are live.

3

This update has just gone live. We now append the statement Reverse charge: S55A VATA 94 applies to all EC sales invoices.