Quickfile's reverse charge box on invoices

I am just switching over to Quickfile. We regularly make intra community supplies of GOODS to our VAT registered customers in other member states in the EU. As such, we zero rate the VAT. We have never mentioned ‘reverse charge’ on our invoices before (we mention ‘intracommunity supply’). Should we tick the ‘reverse charge’ box when creating an invoice of this type in Quickfile? I am not sure what it does.

Likewise, if we buy GOODS as an intracommunity supply (zero rated VAT at source), should we be ticking reverse charge on the purchase order (if there is one - haven’t tried yet)? We’ve always handled this manually in VAT returns before as we buy very little this way.

Note this is all about goods, not services.

Hi @jwf

The good news is, the reverse charge set up in QuickFile is geared more towards goods than services - so that should make your life a bit easier in that respect.

For reference:

The reverse charge option will add the VAT and remove it, as well as adding a line of text to the invoice, like this:

There’s more about the reverse charge option in QuickFile, here: VAT rates explained

VAT is however a fairly complex area, so if in doubt, I would ask your accountant for advice.

Thank you for another quick answer. I think I was confused because HMRC only refers to ‘reverse charge’ when it relates to services, not goods. I read somewhere that Quickfile could not automatically create an EC Sales List. A complication is that entries on the EC Sales list should be for date of supply (regardless of payment or invoice date), as I understand it. Looking at the way Kashflow does it, they seem to ignore this. Is a solution just to record a log of qualifying dispatches in e.g. a spreadsheet?

Edit - scrap that; just found clarification that HMRC does use the tax point for EC Sales Lists. I’ve created an account called ‘Sales - EU VAT reg’ so, hopefully, I can just look at that over the period of interest to extract the relevant invoices to fill out the EC Sales List. Any better way?

QuickFile can generate an EC Sales List, and will do so automatically for you to review, providing there are EC Sales present on your VAT return (box 8).

The EC Sales List can also be filed through QuickFile too if it’s enabled in your VAT settings (Reports >> VAT Returns >> VAT Settings)

Will it do this even though we have to report EC Sales Lists monthly but VAT return (at the moment), annually?

Unfortunately it wouldn’t in this case - it would only take into account sales relating to that VAT return.

If you wanted to log your invoices to the right client, you could use a project tag for these? That would allow you to quickly find all invoices with that tag.

Project tag it is again, then! I am also using belt and braces with a ‘Sales - EU VAT reg’ ledger.

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