Hi,
We have just been supplied some scrap metal from a VAT registered company with a request that we must do a self billing invoice for them & we have signed up an agreement to do so as per HMRC guidelines. I had a few questions, if someone can share some guidance, will be grateful. The first question is more of QF feature & second is an accounting question.
-
HMRC guide lines states that on the invoice (actually Purchase Order/Invoice) that we as a buyer issue to our client (is actually a supplier), should mention - supplier’s VAT number, our VAT number & wording “Self Billing” / "Buyer to account for output tax…£) If you raise a sales invoice on QF, all of these can be displayed as fields are available where this information can be placed. However when you raise either a Purchase Order / Purchase Invoice, supplier VAT number & Text box is not present, where this information can be placed. The only options available are - Project Tag & Invoice Name, but nothing to put terms & conditions or compulsory wordings when doing self billing. Can VAT number be displayed on Purchase Order & purchase invoice underneath their address, and a free text box where text can be placed about wording, similar to when a sales invoice is raised.
-
The accounting question on this issue is that - can the VAT amount be reversed charge on our VAT invoice ? So we raise the VAT liability (buyer to account for VAT on sellers behalf) & claim it on the same invoice. Is that how it should go on our VAT return ? How should a purchase invoice be raised in terms of VAT accounting ? The products are Vatted at 20% and buyer has to account for it (we dont pay this amount to seller).
Many thanks in advance.
Rahul