They pay a monthly subscription to LinkedIn. Invoice is as follows
Net - £16.95
VAT (23%) - 3.90
Gross - £20.85
Payment made £20.85
I believe that if the company registers their VAT number with Linkedin then they won't get charged Irish VAT. Reverse Charge can then be calculated on the Net Amount.
However, as they have about 1 years worth of invoices with Irish VAT, they can reclaim this online by making an application to the relevant country?
How do I post the original invoice though in the meantime. Do I...
Cr Bank - £20.85 Dr Subscriptions £16.95 Dr Debtors VAT £3.90 (a control account to wait for the application)
You can claim the VAT for the previous year directly through the Irish Revenue Authorities. However, I suspect there is a lower claim limit, and the figures you mention are likely to be below that limit. Your subscriptions cost will therefore include the VAT.
