Hi
Happy New Year.
I’ve just noticed there is a new “reverse charge for services” option for VAT in Quickfile 
I have just input a reverse charge for services transaction. I ran my VAT return (under MTD). I could see that the VAT was showing in box 1 and box 4. However the VAT amount had not be debited from box 2 and box 9. Do I still need to manual adjust boxes 2 and 9?
Thanks
Harvie
No. The reverse charge doesn’t touch boxes 2 and 9, those were only ever for EU acquisitions of goods. For reverse charge services the correct treatment has always been to put the VAT in box 1 (not 2) and the net in box 6 (not 9), but QuickFile has not supported that until now.
The new reverse charge option on services will adjust boxes 1,4, 6 and 7. As Ian mentioned box 9 was for EC acquisitions, which are not relevant post Jan 1st. We will be providing some explanatory notes to accompany the new options shortly.
Once we’re clear of the filing window for returns that intersect the transition period (8th April), the VAT return boxes will be updated as follows:
Current wording:
Box 2: VAT due in this period on acquisitions from other EC Member States
Box 8: Total value of all supplies of goods and related costs, excluding any VAT, to other EC Member States
Box 9: Total value of all acquisitions of goods and related costs, excluding any VAT, from other EC Member States
New wording:
Box 2: VAT due in this period on intra-community acquisitions of goods made in Northern Ireland from EU Member States
Box 8: Total value of intra-community dispatches of goods and related costs (excluding VAT) from Northern Ireland to EU Member States
Box 9: Total value of intra-community acquisitions of goods and related costs (excluding VAT) made in Northern Ireland from EU Member States
Thanks for your replies Ian and Glenn
Following the information above, I would have expected Quickfile to only use boxes 1,4,6 and 7 for this reverse charge on services invoice.
However, on my VAT return, for this invoice I could see the VAT amount in both box 1 and box 2. Likewise, the net amount was showing in both box 6 and box 9.
Any suggestions?
Just had a light bulb moment……!
I’ve been in and checked the settings for the client. I’d still got it set to" VAT registered in another EU member state". That explains box 2 and box 9!
Just out of interest, what would be the correct VAT settings in Quickfile for a client in USA who we only buy a service from?
Technically if you have someone on annual accounting with a period of account running from December to November then there could be a return involving EU dispatches/acquisitions right up to the end of January 2022…
Yes and VAT returns that are filed late. We have however been instructed to change the wording on the 8th April. I expect HMRC will determine the meaning of those boxes based on the period which is being filed for. We didn’t get any specific explanation on that point.
Annual accounting isn’t just a technical point. We are on it and have been intracommunity transferring. So please keep it in mind; it is important for some of us. I have no expectations of HMRC to interpret anything correctly.
As long as all that’s changing is the wording on the forms, and the actual values will still be calculated correctly for EC dispatches/acquisitions dated before 1st Jan.
Just did my VAT return and although there is now a tick box for reverse charge on services, which I ticked, those figures are still going into boxes 2 and 9 as if they were for goods. I had to adjust 9 to 6, and 2 to 1, as usual?
I had exactly the same issue.
Have a look at the VAT settings you have for each client affected. If you’ve still got it set to “another eu member state” you’ll get boxes 2 and 9 filled.
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