Check your supplier contact recordMake sure your supplier record has the correct country and a VAT registration number set on their supplier record. - From Contacts, choose Suppliers and then the relevant supplier.
- From Addresses, select the correct country, such as Ireland.
 - In Options, enter the Supplier's VAT number.
 - Save your changes.
Record the purchase invoice- From Purchases, choose Purchase Invoices, and then New Invoice.
- Choose the relevant supplier record.
- Select a service from the list on the first invoice line or enter a Description.
- Select the relevant Ledger Account and enter the price.
- From Goods/Services select Services (standalone).
- Select the VAT Rate you use when buying the same service in the UK. Although the VAT amount shows as zero, it still gets recorded on the VAT return.
- Select Save.
How a reverse charge transaction appears on the VAT returnThe VAT records both a sale and a purchase on your VAT return, effectively cancelling each other out. If you have selected Standard or Lower Rate, the VAT amount shows in: - Box 1 - VAT due in this period on sales and other outputs
- Box 4 - VAT reclaimed in this period on purchases and other inputs
The net amount shows in: - Box 6 - Total value of sales excluding VAT
- Box 7 - Total value of purchases and all other inputs excluding any VAT
NOTE: Exempt services appear only in Box 7.
[BCB:299:UKI - Personal content block - Dane:ECB][BCB:302:UKI - Search override - Accounting UK:ECB] [BCB:276:UKI - hide back button:ECB] |