Hi I have a client who has received an invoice which states "Reverse Charges Apply".
I have been reading http://www.hmrc.gov.uk/manuals/vatrecmanual/vatrec6060.htm and this states that the invoice must show how much tax is to be paid, or state at what rate it must be paid. However this invoice says nothing else.
No vat would have been charged, however you have to account for the vat at the purchasers end. Calculate the vat element and put in box 1 but then put same figure in box 3 so you effectively claim it back. The net amount would go to boxes 6 and 7.
