Further problems with VAT accounting with EU suppliers

[marksenior]

Continuing the discussion from VAT accounting for EU suppliers of both GOODS and SERVICES:

@marksenior

We have both goods and services supplied from companies in other EU registered companies, our understanding is that the VAT return calculation is different for goods than for services.

We can see how the quickfile system works for services supplied but not for goods supplied. We have read the help file but still can’t understand how to account for goods supplied… can you help please.

I have now tried to categorise supply of service from a supplier in another EU country and have followed the procedure in the knowledgebase “EC Reverse Charge (Tax Shift)”
The invoice was nominal categorised to sales commissions.

When I audited where quickfile had put the VAT report transactions it had used boxes 2,4,7 and 9 rather than the expected 1,4,6 and 7 as indicated in the EC Reverse Charge (Tax Shift) procedure.

In other words it had treated this invoice as if it were supply of physical goods as opposed to supply of a service.
Bearing in mind earlier postings on this subject with FK and Glenn I was somewhat surprised at this outcome.

Can anyone throw any light on this subject please.

[Glenn]

I don’t know enough about the technicalities of the EC Reverse Charge but I shall ask @Joe to comment.

EDIT:

Apologies I got them the wrong way around on the previous post (now corrected). It’s goods that are supported, not services.

[Joe]

To clarify, at the moment Quick File only automatically handles the reverse charge on Goods and not Services, therefore unless there is an element of services within the purchase invoice for goods, you will need to make a manual adjustment to the VAT return in Quick File before submitting.

The problem we had with handling services is that there are a number of place of supply rules for determining where services of different kinds are made. For VAT purposes, the place of supply of services is the place where a service is treated as being supplied. This is the place where it is liable to VAT (if any). Although we will revisit this area and leave it up to the user to follow the rules.

ADJUSTING VAT RETURN FOR SERVICES:

See our knowledgebase guide on 'VAT Returns Guide >> VAT Adjustments’ for further information on adjusting the VAT return.

Before entering any adjustments, we would recommend producing a schedule of all the entries that make up the adjustments; this will provide backing information for both HMRC and yourself. You can then upload the document onto the Quick File document manager for safe keeping. To assist, you may want to use the backing schedule produced from Quick File as a template by selecting ‘Download Calculations’.

[marksenior]

Thanks Joe, your explanation fits with what we are seeing on the system.

Can i suggest that the Knowledgebase article on this VAT reverse charge issue is revisited ?