I have an online purchase of envelopes from Poland. Both supplier and I are VAT registered.
£97 is the gross payment I made.
Invoice is £78.86 and supplier has made a reverse payment to me of VAT of £18.14.
VAT rate in Poland is 23%.
When I try to set up the supplier, it accepts the 23% in the supplier details but then when I try to add new purchase, it only allows me to make the VAT blank, No VAT, 5% or 20%.
How cvan I set up my purchase to accurately reflect the 23% VAT and reverse charge?
If you’re both vat registered then the supplier should have invoiced you at zero VAT, and on the QuickFile end you enter the purchase invoice lines at the net amount they charged you and apply the appropriate UK vat rate (20%), then tick the reverse charge box. The Polish rate doesn’t come into it.
Assuming you have an invoice from the Polish supplier for £78.86 (no VAT) then your purchase in QuickFile would be entered as net £78.86, 20% VAT, with the reverse charge box ticked. The invoice total shows as £78.86. For the payment and partial refund I’d do the initial payment by tagging from the bank as payment to a supplier, pay down multiple invoices, select the £78.86 purchase and leave the rest unallocated. Then go to the purchase, click through to the payment (link at the top) and there should be an option to “refund balance”. This will create a new money in transaction, if there’s already a duplicate one imported from your bank feed it can be safely deleted.
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