Reverse Charge vat for purchasing from EU

Accounting
1

Hi

I am hoping that someone from quickfile who has access to my files, can check if I am inputting my invoices from Holland in the correct way? The company is Heemskerk and I am doing reverse charge Vat on this.

I am getting panicky that I am doing this wrong.

Thanks

2

Hi, are you buying good or services? The rules are slightly different. QuickFile has an in built feature for reversing the VAT charge from EU member states.

3

Was there an answer to this? I am importing goods from the EU. The invoice is zero rated from the supplier as they have my VAT number. when I enter the amount do I enter that as still zero rated? and do i use the reverse charge button. Thanks for any help.

4

If you’re importing goods then you should

  • set the supplier settings as “VAT registered in another [sic] EU member state”
  • when you enter the supplier’s invoice into QuickFile, put the net as the amount they charged you, and the VAT rate as the UK VAT rate you would have been charged had you bought the same goods from a supplier in the UK - usually 20% but might be 0% for food or 5% for sanitary products; if it’s a mixture of goods that have different UK rates then you’ll have to split the purchase into multiple lines for the relevant totals
  • tick the box labelled “apply reverse charge” - this will show the UK VAT added on to each line and then the total VAT removed again at the bottom as “EC VAT exemption”

Doing this will cause QuickFile to apply the VAT rules for EC acquisitions of goods when completing the VAT return (despite the name of the tickbox it will not apply the reverse charge, which is a similar but slightly different set of rules that apply to buying services rather than goods).