RE: reverse charge invoice on service purchase from eu

[DABS]

RE:

Reverse Charge Invoice on service purchase from EU (eBay Fees)

I have tried to create an invoice for eBay fees and tag it to a client I called eBay, that is shown as being in Luxemburg. On the VAT return it shows the gross fees in box 9 (Total value of acquisitions from other EC states exc VAT), box 7 (Total value of purchases exc VAT), box 2 (VAT due on EC aquisitions) and box 4 (VAT reclaimed on purchases and other inputs). The issue is that box 2, 8 & 9 are for GOODS only and not services like eBay fees. It appears it populates box 2 instead of box 1 and…

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Can someone please provide a solution on how to do what’s is listed below, since we have a lot of payment to eBay which are a service and not goods

Continuing the discussion from Reverse Charge Invoice on service purchase from EU (eBay Fees):

@Glenn

At the moment the EU reverse charge only supports goods not services. So any adjustment would need to be manual.

The rules around the reverse charge on services is complex and it’s difficult to develop a one-size fits all approach here. This is the advice I’ve received previously when looking at this with our accounts + dev team.

There are number of discussions around this subject on the forum, I will try to dig up the posts.

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this seems to be a big downfall in QF, and ultimately since our business is eBay based, if there is no easy solution to this issue, we may have to look at moving away from QF to another package/service.

Any pointers would be gratefully appreciated

[Glenn]

Firstly bear in mind that the boxes on the VAT return affected here are statistic boxes and as such won’t change your final VAT calculations.

Also there are a number of forthcoming legislative changes affecting the handling of VAT in all EU member states, some of these changes are outlined here on the GOV.UK site.

We are likely to look at this in Q1 of 2015 when we have a clearer picture of the changes. This will save us from investing a lot of resources into re-coding the system only for the rules to change again. VAT is not a simple area so we want to take our time with this and get it right.

[DABS]

So there a no implications, due the VAT amounts showing in the wrong boxes ?

[Glenn]

I’m not aware of what the implications will be for not adjusting the boxes for EC purchases when acquiring services, you’d need to check this with HMRC. All I am saying is that getting the correct VAT figure for box 5 will likely be of greater importance than the statistics boxes.

For now I world recommend manually adjusting the boxes as previously discussed. We will review the situation in Q1 of 2015 and update users accordingly.

[Marcus_West]

Sounds Good. Will be perfect if there was just a little tick box to say it was a service and then it does not record the VAT in the EC boxes, but in the correct VAT boxes instead.