Reverse Charge VAT on ChatGPT?

Accounting
5

Perplexity again:

“If you’ve already submitted your VAT return for the last quarter and forgot to account for reverse charge VAT on purchases like OpenAI subscriptions, you can’t amend the submitted VAT return directly, but there is a solution.

According to HMRC guidelines, if the error was not deliberate and amounts to less than £10,000 of underpaid VAT, you should correct it in your next VAT return[1][4]. This is the standard procedure since HMRC does not allow the submission of amended VAT returns once they’ve been filed.

In QuickFile specifically, you would:

  1. Include the correction in your next VAT return
  2. Make sure you properly document the adjustment for your records
  3. Tag the relevant transactions correctly for the next period

If you need to see a breakdown of the items in your VAT return, QuickFile allows you to download the calculations in CSV format which can be viewed in Excel[2]. This might be helpful to document what needs to be corrected.

Before making any adjustments in your next return, it’s advisable to produce a schedule of all entries that make up the adjustments to provide backing information for both HMRC and yourself. You can upload this document to QuickFile’s Document Manager for safekeeping[2].

The key thing is not to worry too much - this is a common issue that has a straightforward correction process as long as the error is below the £10,000 threshold.

Sources
[1] Resubmitting a VAT return - Support - QuickFile Resubmitting a VAT return
[2] VAT Returns Guide - QuickFile VAT Returns Guide
[3] Sending a VAT Return - GOV.UK Sending a VAT Return: When to do a VAT Return - GOV.UK
[4] Can I file an amended VAT return? - Knowledgebase Can I file an amended VAT return?
[5] Edit your VAT return details - FreeAgent Support https://support.freeagent.com/hc/en-gb/articles/360021966259-Edit-your-VAT-return-details
[6] Self Assessment tax returns: If you need to change your return Self Assessment tax returns: If you need to change your return - GOV.UK
[7] How to correct VAT errors and make adjustments - Ember How to correct VAT errors and make adjustments
[8] How do I resubmit a return or file an amended return? - TaxCalc https://www.taxcalc.com/kb/863”