Since 1/1/2021, under the the NI Protocol, sales from NI to RoI (EU) treatment remains as before, i.e. Sales and purchases are VAT exempt / subject to EC reverse charge. This is not recognised by Quickfile.
I know what you’re trying to say but for the record this is not actually true - sales are zero rated (not exempt, which is an important distinction) and purchases of goods must be accounted for in the same way as last year, as EC acquisitions (not “reverse charge”, which is a similar process for services rather than goods, but not quite the same as it puts the values into different boxes on your VAT return).
QuickFile does still allow you to mark a supplier as “VAT registered in an EC member state” and then tick the (still) misleadingly-named “Apply EC VAT Reverse Charge” checkbox to apply the acquisitions rules, but the warning message says it only applies to “purchases issued before 1st January”.
@QFSupport would you consider changing this warning to say something like “before 1st January or subject to the Northern Ireland Protocol”? And change the caption of that tickbox to correctly say what it actually does - this has bugged me ever since I started using QuickFile. Or migrate the setting down into the new “additional VAT options” section along with the (actual) reverse charge, postponed accounting, etc.
The way that QuickFile will process the VAT is outlined in this post VAT Updates - January 2021 Hope this helps
This check box in the top right is getting removed at the end of March and the VAT options area (further down) will be the new place where any specific VAT provisions will be applied. We will look at the wording in the meantime to make things a little clearer.
Cool - it will still be necessary to be able to do EC acquisitions in some form beyond March, both for NI businesses as per this thread but also for businesses on annual VAT accounting who may still be submitting returns that include December 2020 acquisitions right up to the end of January 2022.
We’ve spent the last year rebuilding the entire VAT processing logic. We’re moving towards a more unified system and it will be far simpler in the future to add new VAT options and accurately control box placement for any of the VAT provisions needed.
Additional options for NI handling will be ready in the next few weeks. Up until this point for Northern Ireland I’d recommend using the EC flags and where necessary applying manual adjustments.
@Lyle we have now added specific VAT options for NI based users. On the sales invoice editor you will see a check box for EU goods and services. These options will be visible providing your account is registered to an NI postcode.
You can find more information in the following guides.
This topic was automatically closed after 14 days. New replies are no longer allowed.