Last quarter invoice, EC Sales List and VAT return

Accounting
1

Dear all,
I have an EU client whom I have invoiced for service provided in the last quarter. However the client has not agreed with the invoice (disputes and I might have to write-off if they do not agree), so the invoice is not marked as ‘sent’ in QF (the invoice is still a ‘Draft’ in QF), and this has not gone in the quarterly VAT return and associated EC Sales list. I am wondering what happens if he agrees- I would have a scenario where the invoice is for the last quarter whose VAT return has been submitted. There won’t be any VAT payment or refund due to the HMRC or me as ‘reverse charges’ applies, however, Box 6 and 8 will change and show that we had a bit more business.
Many thanks,
Solar

2

It doesn’t matter. It will go in the following vat quarter. Which is OK.

3

If you’re supplying services then these shouldn’t have been going in box 8 in the first place - that’s only for dispatches of goods. It’s been a long standing bugbear of mine that QuickFile has a button labelled “reverse charge” but clicking that button doesn’t actually apply the reverse charge rules, instead it has always applied the rules for EU dispatches/acquisitions of goods.

4

Thanks Paul. So if he agrees, I simply mark the invoice as sent, and submit next quarter return as usual? If he doesn’t not then, I just delete the invoice?

5

Ian, I was not aware of that rule- QF should correct this. So where does the Services go, if they don’t go in Box 8?

6

Just in box 6 as a normal zero rated sale. You need to mention on the invoice that the customer is responsible for accounting for their own VAT using the reverse charge, and for sales prior to 31st December you’ll need to manually add them to the ECSL as QuickFile only does that automatically for goods invoices where you ticked the (mis-labelled) box.

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7

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