HI, grappling with first MTD VAT return. Have made 1 sale to EU for £1273, without VAT as customer is registered in his country. Have entered customer VAT number but system is not adding it to Box 8, but to the UK income box. Am in despair, would appreciate any insight
Are you selling goods or services?
We’re selling goods, Ian
When you set up the customer did you set their VAT settings?
You would need to have selected the top option, VAT Registered in another EC Member State
Hope this helps?
HI Beth, I’ve done that; is it usual to have to manually enter the sales amount into box 8? I’m beginning to think the major discrepancy is from my other question, which I’ll go to now. In any case, all details are correct for Spanish client, with Spanish EJ (vat) number etc, but box 8 value is showing 0
Box 8 should be automatic as long as the settings are correct, as it is not pulling through I would double check everything relating to the invoice, so the date and your vat settings.
HI, did all that. Spanish VAT number in place, dates correct, etc. Can’t see a box to tick for Customer is VAT Registered but assume the existence of VAT number renders that irrelevant?
Having had a play with this in a dummy invoice on my account, I believe that if you’re dispatching goods to an EU customer then in QuickFile you don’t make the invoice zero VAT, instead you do it as the normal 20% VAT you would charge to an EU customer, but tick the confusingly-named checkbox “Apply VAT reverse charge”. What this box actually does is put an entry at the bottom of the invoice that reverses the VAT you just added to return the final invoice total to just the net, and also puts this total into box 8:
@QFSupport you should really change the big red “reverse charge applicable” to something more like “Intra-Community supply subject to VAT in the country of acquisition” (ref) - this is an invoice for goods, not services, so the reverse charge is specifically not applicable here.
As we discussed in another topic, this is one that’s on our list and will be released in due course.