Reverse charge VAT - USA Based company


In relation to the reverse charge, I am dealing with a supplier that is US based, but they have a GB VAT number.

The invoice states the customer (me) should pay the VAT but this is a purchase.

The way the purchase order looks is that we add VAT then take away the same with a 0.00 difference, is this a wasted exercise and maybe just as easy to mark this as zero VAT? which the numbers seem to suggest?

Net £32.68 VAT 6.54 then reverse charge -6.54 TOTAL on the first line = 39.22.

The final balance then ends up at £32.68


Hi @daveh001

If the invoice itself states that it is subject to reverse charge, then you can use the additional VAT options under the invoice and tick “Reverse charge on services” which will do all the work for you.

I hope this helps, but if you have any further questions, please don’t hesitate to ask.


I’ve done that and wondered if there was any way to set this up for the supplier so that I don’t have to complete this each time?

Hi @daveh001

Unfortunately this isn’t an option at the moment.

I’m sorry I couldn’t be of more help on this occasion.

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