Really odd one. We’ve been billed for €0.08 under the reverse charge system so need to account for the 1p of VAT. Since the value is so low the supplier doesn’t want to collect payment as it’ll cost more to collect than it’s worth. Is there a way to log a zero payment? If not, would it be best to delete the invoice and manually adjust the VAT return by 1p?
If they’re not collecting it, are they deferring it (e.g. charging you the invoice when your next bill is due), or are they crediting it (so it will never be paid)?
They’re crediting it so it’ll never be paid.
If not already done create a purchase invoice for the 8 pence and then apply a credit note to that invoice over the same amount (£0.08)
Will that account for the 1p of reverse charge VAT correctly?
If the purchase has been credited in full then there’s no reverse charge VAT to account for.
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