Reverse Charge VAT on Non EU services

[ForceOne]

Hi guys

I love the way the system handles invoices from the EU and the VAT implications.

I’ve raised this question before, but I’m still struggling.

I have a number of suppliers in the US, as I’m sure do many others these days. Amazon, GoDaddy, etc. where the invoices for certain services come from the US without any mention of VAT.

If you look at this page from HMRC - it explains how one needs to “reverse charge” the VAT in the same way as if it’s been exempted by an EU supplier, i.e. charged to yourself as if the supplier was UK based.

It’s quite a headache to work all this out at VAT return time. As I say, I love the way this is taken care of with the EU invoices so everything adds up neatly. It would be nice if there was some kind of feature to automatically handle the way VAT is calculated in respect of supply of services from outside the EU.

Thanks for your time - really appreciate it if you could give this some consideration

[Glenn]

If you want to apply the VAT reverse charge, you can do so for any supplier by going into the supplier settings and invoking the following option.

Then on the invoice just check the box to apply the reverse charge. Whatever VAT you apply on the invoice will be reversed and placed into the appropriate boxes in the return.

I can’t really comment on the eligibility of doing this on a US based purchase, the rules around VAT and place of supply are complex, I’d definitely clear that with your accountant.