VAT outside the UK

[GaryWilliams]

Hi All,

I have two VAT issues that I can’t figure how to handle.

1. I pay for services from a company in the USA. On their invoice, the vat entry is $0.00 with the note “Tax (VAT United Kingdom (20.00%) - £22.82 reverse charge: Customer to pay the VAT to HRMC)”.

How do I do this within QF?

2. I have a customer in the ROI. Do I charge VAT (at 20%) or charge £0 and add a reverse charge notice to the invoice re the customer has to pay 23% to the ROI tax authorities?

Cheers

Gary

[ian_roberts]

@GaryWilliams

I pay for services from a company in the USA. On their invoice, the vat entry is $0.00 with the note “Tax (VAT United Kingdom (20.00%) - £22.82 reverse charge: Customer to pay the VAT to HRMC)”.

Enter the purchase with the net value they gave you, set the VAT rate to 20% and tick the box for reverse charge services in the additional VAT options section at the bottom of the purchase editor.

@GaryWilliams

I have a customer in the ROI. Do I charge VAT (at 20%) or charge £0 and add a reverse charge notice to the invoice re the customer has to pay 23% to the ROI tax authorities?

Goods or services, and is the customer a vat registered business or a consumer?

[GaryWilliams]

Hi Ian,

Thanks, that is my reverse charge sorted.

The customer in the ROI is a Car Dealership so I assume vat registered. I provide him with an online service.

Cheers

Gary

[ian_roberts]

@GaryWilliams

The customer in the ROI is a Car Dealership so I assume vat registered. I provide him with an online service.

Then my understanding is that you would make the sale zero rated and put a note that the customer must account for their own VAT via reverse charge. But I’m not an accountant so if any of the accountants on this forum comment differently I’d believe them over me!

[GaryWilliams]

Hi Ian,

Thanks for these two clarifications. My VAT is now sorted.

Regards

Gary