If you are vat registered and use Google Adwords you need to apply the reverse charge so that the supply appears in both output and input vat. How is this achieved in supplier setup please?
I think the easiest way would be to show you an example of the purchase invoice form:
As you can see in the footer totals the VAT is itemised and then removed again. This will trigger a reverse charge in the VAT return. You will need to tick the box
VAT Exempt and ensure the correct rate is applied… I believe Google are registered in Ireland and therefore the rate is 21%, just verify this by cross-checking against a recent Google invoice.
Hope that helps!
sorry to hi-jack this thread, but, we have the same issue, google vat, but on our purchase invoice we do not have the “VAT Exempt” box. Is there a setting somewhere to enable this?
also, I just read the HMRC guidance on this and it says you should account for the vat at the UK rate, as basically our uk business becomes the supplier and customer, so vat is charged at the uk rate (20%) not Irish rate of 23%
Go into the supplier modify screen and check the following box, then enter their EU VAT number.
The net effect should be the same as it goes on and comes back off. The reason people enter the country rate is so that the total and the vat match that on the invoice.
gracias - will check the box on the supplier and sort that out
Appreciate the net is zero, just wanted to ensure we were doing it correctly.