Ive seen a few postings on here about reverse charge, but wanted to see what people thought of this one and where it sits in the VAT return.
Services only supplied to EU member states (not digital) and all to companies abroad who provide (verified) VAT numbers so 'reverse charge' and these VAT numbers quoted on invoices sent.
Ive just been advised by an Accountant that these invoices should be in box 6 and 8 of the VAT return, but I understood box 8 was just for goods and their related costs.
Plus Section 3.9 of VAT notice 700/12 states do not include in box 8 separate supplies of services. https://www.gov.uk/government/publications/vat-notice-70012-filling-in-your-vat-return/vat-notice-70012-filling-in-your-vat-return
These sales of services are reported on the EC Sales list.
Have I missed something? Confused.com
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
If it's goods, the net amount goes in box 8, and if it's services, it doesn't.
In both cases, you also need to complete an VAT EC Sales List - and this allows you to differentiate the two types of sale using the 'Indicator' column (in which you enter '3' for services, or leave blank for goods).
If you use Sage, you can use that as a double check on what you're supposed to do by using the practice company - and its behaviour is consistent with what HMRC says, provided you use the right tax codes: T4 for the sale of goods to VAT registered EU countries, and T22 for services (based on the defaults).
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Vince M Hudd - Soft Rock Software
(I only came here looking for fellow apiarists...)
Hi Vince
When i saw the comment from the Accountant I thought I had been doing it wrong for three years! Thanks for confirming I've not lost the plot (well not in terms of this Vat issue, can't say for the rest of the time, wibble wibble!)
Thanks again.
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
