Reverse Charge VAT for Services such as Google Adwords, Ebay Amazon

[ian_roberts]

As you’ve discovered, the “reverse charge” checkbox in QuickFile doesn’t - it applies the goods acquisition rules instead. I’ve laid out a possible way to record reverse charge transactions accurately without needing any manual adjustments in another thread

VAT on EU supplies and services

QuickFile does not support the reverse charge. It has a checkbox that’s labelled “apply reverse charge” but what that actually does is to apply the rules for EU acquisitions of goods, not the reverse charge. The way I’ve had to deal with it is to tick the “reverse charge” box anyway and then manually adjust my vat return to move the services vat from box 2 to box 1 and the matching net from box 9 to box 6, but that won’t necessarily work if you’re on cash accounting (acquisitions are always ha…

but it’s quite fiddly. The “adwords reverse charge” post you linked to will do the job if you’re on accrual accounting but it’s not strictly right if you’re on cash accounting, and in these days of MTD it seems better to avoid manual adjustments if at all possible.