EU purchases

EU purchases from supplier in France VAT not charged by them 20% on invoice
VAT exempt ticked but no change to the invoice

What is your question? What is showing in QuickFile and how is it different from what you expected? Are you purchasing goods or services, and if services, what kind of services and what is the “place of supply”?

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Thank you for replying Place of supply France. Goods under ÂŁ135.00 supplier not charging VAT
We are VAT registered Query how to input invoice so that QB treats it for reverse charge on VAT form

That is a very good question and one to which I have never been able to find a straight answer from any official HMRC source. The closest I can find is Changes to VAT treatment of overseas goods sold to customers from 1 January 2021 - GOV.UK which says

They don’t say anywhere exactly what they mean by “a reverse charge procedure” - obviously it must involve putting the UK VAT in boxes 1 and 4 but there’s no clear info on whether the net amount needs to go in box 6, box 7, both or neither. “Postponed accounting” (for imports over £135) specifies that the net should go in box 7 but not in box 6, however the procedure that is actually called “reverse charge” (for services purchased from overseas) says you must put the net in both boxes 6 and 7. Which of these treatments is correct for reverse charge VAT on low-value imports of goods? Your guess is as good as mine, if you want a definite answer ask an accountant.

If you want to put the net in both 6 and 7 then the “reverse charge on services” tickbox will do that, if you want to put the net only in 7 (not 6) then “postponed vat accounting” would do that.

Reverse charge on VAT implies you account for the output VAT as if you were selling the goods or services. Therefore net goes in box 6 and output VAT in box 1. If you are then able to reclaim the input VAT, you put net in box 7 and input VAT in box 4. If the VAT is not able to be reclaimed, then leave out this step. As for doing this in QF @ian_roberts knows more about this process - I don’t currently use QF VAT returns.

Thanks, I was honestly not sure which treatment is correct, particularly now that there’s another type of process that’s also called “reverse charge” (the domestic one for CIS) that does specify box 7 and not 6.

Edit: though I guess in the CIS case the net does still go in a box 6, just the one on the supplier’s return rather than the purchaser’s.

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@cardiffquick in case you hadn’t realised, @cbstephensaca is a chartered accountant so her opinion is the one to follow.

Thanks for all your help and I will certainly use @cbstephensaca advise

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