Reverse charge of flat rate scheme

[The_Graphics_Boat]

hi there, im not sure if this is what qf should be doing, but id better check…

im on the flat rate scheme, and occasionally buy from an eu supplier where they say i am to account for vat via reverse charge. ok so far,

but wheni do this, it takes the amount of vat off my vat return as if i am reclaiming vat - rather than ( i would expect) to pay more vat

hope you can shed some light on this!

thanks
Will

[ian_roberts]

Reverse charge transactions are supposed to be accounted for outside the Flat Rate scheme, the same way as you would if you were not on flat rate, so you simultaneously “pay” the VAT as if you were the supplier and “reclaim” the vat as if you were a normal (non flat rate) VAT registered customer. So the net effect of the purchase on your VAT return should be nil - adding the same amount to both boxes 1 and 4, so no change to box 5.