Reverse charges on services after 31/12/2020

Hi. Currently QF show me the information that I should disable the option in customer accounts for vat registered in an EC Member State for invoices issued after 31/01/2020. But If I do that that will unable me to issue an invoices with reverse charges to those businesses - EC members. According to Hmrc guideline there still will be reverse charges for services between GB and EU customers. Can you advise me how to prepare a reverse charge invoice in QF after 31/01/2020 to EU customers with EC VAT treatment option disabled in these client accounts? Thank you.

Hi @Iwona1

We have introduced new options for this. Please see the announcement, here: VAT Updates - January 2021

That option has never been appropriate for sales of services anyway - all you do for services where the “place of supply” is not the UK is to do the invoice as “no VAT” (i.e. zero rated) and put a note somewhere on the invoice to the effect that the buyer must account for their own VAT using the reverse charge.

The old EC option only worked for sales of goods, not services, and would put the net in box 8 on your VAT return.

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