As far as i understand if we set a customer account to be vat registered in another eu member state it automatically checks the ‘apply reverse charge vat’ setting when creating a new invoice or estimate.
Am I not correct in assuming this is not a good idea when the customer has not been assigned a valid EU VAT number - should the reverse charge option rather only be applied if a Valid (or at least something has been entered) in the customers VAT number details?
Hope that makes sense - what I am trying to ensure is that we only do reverse charge where the VAT number of the customer is held on file (as that seems to be the HMRC requirement).
HMRC says (from what i read) that if you are in doubt (don’t have a vat number) then you should be charging the VAT.
It might be nice to rather make the ‘apply reverse charge’ check mark box (so just off by default) and then warn if the user tries to check it warning that no VAT record is in place.
I’d rather make it more difficult (but still possible) to proceed without one rather than allow invoices to be created when there is no record on file.
Appreciate anything you might consider in this regard will be appreciated but I think it would help all to also understand it is NOT a good idea to issue invoices with reverse change vat when you dont have the required information on file.