It’s my first time posting on this forum, so apologies for any mistakes
In my understanding, according to Policy paper: Changes to VAT treatment of overseas goods sold to customers from 1 January 2021 if I sell goods under £135 to a VAT UK registered business customer and those goods at the point of sale are outside the UK, the Reverse Charge procedure is applicable.
However, I have no idea how I can create an appropriate invoice in QuickFile, as there is no Reverse Charge option available for Sales Invoices
And I don’t think using 0% rate would be enough, as I am pretty sure the VAT has to be visibly charged and then claimed back for it to be considered a proper RC
Thank you in advance for any help!
Using the 0% rate is enough, you just have to add a note to the invoice (e.g. in the payment terms box) stating that the customer is responsible for accounting for their own VAT via the reverse charge.
The “charged and then claimed back” thing is how it appears in the purchaser’s VAT records, not the seller’s.
The only case where you have to state the amount of VAT is where you’re the one charging VAT, so where the goods are already in the UK at the point of sale or where the consignment is under £135 and not going to a VAT registered business customer. Anything over £135 coming into the UK you don’t charge VAT anyway, the customer has to pay it at import time (or postponed, but that’s up to them rather than you).
Thank you very much for such a detailed explanation! I deeply appreciate your help
Have a good day!
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