Reverse Charge for UK Purchases

Hi,

I need to apply reverse charges on a supply (purchase) from a UK VAT registered supplier as my product falls into category where buyer needs to account for VAT if registered which I am. There were a few topics about reverse charge if purchase is made from EU & I can see this works well if the supplier is set up as EU VAT registered, which then triggers a tick box for VAT exemption. Unfortunately I tried to use this option, it does apply the reverse charge but also puts the purchases in EU box in the VAT return, which creates another problem.

Is there a way around this ? Or is the adjustment coupled with manual journal entry the only way.

If somebody can advise on this, will be highly appreciated.

Regards,

Rahul

You dont need to do journal as such, just record your purchases and manually adjust vat return

Completion of your VAT return

You must enter the output tax payable on purchases under the reverse
charge in box 1, but the VAT exclusive value of the purchases must not
be entered in box 6.

Input tax may be reclaimed, subject to the normal rules, by including
it in the total shown in box 4. The VAT exclusive value of the
purchases should be entered in box 7 in the normal way.

Dear Faraday Keynes,

Many thanks for your help on this, I appreciate it,

Regards,

Rahul G

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