Reverse charge VAT on services (non-EU)

[cjdshaw]

I’ve had a US consultant do some work for me, and he’s invoiced me, in pounds, but with no VAT obviously. According to HMRC, I should be accounting for this by reverse charging the VAT

Paying VAT on imports from outside the UK to Great Britain and from outside...

Back in 2014, Joe stated that Quickfile didn’t handle reverse charge VAT for services

Further problems with VAT accounting with EU suppliers

To clarify, at the moment Quick File only automatically handles the reverse charge on Goods and not Services, therefore unless there is an element of services within the purchase invoice for goods, you will need to make a manual adjustment to the VAT return in Quick File before submitting. The problem we had with handling services is that there are a number of place of supply rules for determining where services of different kinds are made. For VAT purposes, the place of supply of services is …

Is this still the case? Should I just enter this as adjustments when I do my VAT return, and is there any prospect of this being handled more elegantly in the future?

[ian_roberts]

It is still the case that there is no native support for the reverse charge within QuickFile. There’s a couple of workarounds I’ve detailed on another post a couple of weeks back.

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…

(That thread is entitled “EU supplies” but the RC process works the same for non-EU)