I use Hermes (Packlink) as the courier for my sales through Amazon and Ebay. It states on their invoice “Reverse charge - Vat not applicable under the articles 44 of the 2006/112 the Directive of the EU Commission. Recipient is liable for the VAT”
There is no VAT on their invoice. How do I need to deal with it please.
Enter the net as the total they’ve charged you, add on 20% VAT as you would have been charged by a UK supplier, then under the extra vat options at the bottom of the purchase editor tick the box for reverse charge on services. This will appear to deduct the VAT again, leaving the total matching the original net, but it will account for the reverse charge correctly by putting the VAT in both boxes 1 and 4, and the net in both 6 and 7.
1 Like
Thank you for this Ian. I only sell in the UK.
The payments are automatically taken from either Paypal or Credit Card.
Do I have to create a purchase invoice for every transaction manually or can it be tagged to create an automatic purchase invoice as I have a lot of transactions
Im not sure whether it’s possible to make reverse charge purchases automatically from bank tagging rules, but as long as everything’s accounted for on your VAT return for the correct quarter I guess there’s no reason why you couldn’t create bulk weekly or monthly purchase records in QuickFile rather than having to do each one individually.
The key thing is for each purchase and payment to fall in the right VAT quarter.
1 Like
This topic was automatically closed after 9 days. New replies are no longer allowed.