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Post Info TOPIC: Reverse charge VAT


Master Book-keeper

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Reverse charge VAT


Arrgh, I knew I couldn't avoid it for ever lol.

Airbnb commission as far as I can ascertain is reverse charge, so from what I've gleaned its accounted for in both input and output VAT in the EC boxes. (irish VAT) 

That just means the two are cancelled out and reading up I can make a claim to HMRC after 30th September each year, providing it's more than roughly £50. I s that correct.  



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John 

 

 

 Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.



Expert

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I think you're conflating two things there, John.

In a reverse charge scenario, the supplier should have been given the customer's VAT registration number, and supplied the service (the Airbnb commission) net of VAT (the invoice should show the customer's VAT number). You then (as you say) account for the VAT that wasn't charged in both the inputs and outputs, so it cancels itself out from your point of view. The supplier then includes the sale on their country's equivalent to our EC Sales list return.

If they've charged the VAT (because no VAT number has been submitted) - which is what it sounds to me like your talking about - then it's not been reverse charged. You can't claim the (23% in Ireland?) on your UK VAT return at all, and don't treat it as though it's a reverse charge. In this instance, you can apply to reclaim the VAT from the country from which it has been charged, but the rules vary from country to country about when, how much (minimum amounts), and for what.

Brexit, of course - especially a no deal one - will stuff all of this up.



-- Edited by VinceH on Tuesday 30th of October 2018 07:41:58 PM

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Vince M Hudd - Soft Rock Software

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Master Book-keeper

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Hi Vince 

Glad I asked.  Yes, VAT is on the invoice but is charged at 20%, not 23%   Invoice I've just printed off is £10.19 + 2.04 VAT. but the VAT no is an Irish one.

 



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John 

 

 

 Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.



Master Book-keeper

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Stick your clients vat number into his account and ask for a new invoice. Then reverse charge will apply, so yes and input no output. Not sure in your software, T22 sage (off the top of my head, if I'm recalling correctly. T24 the other way! Rambling now)



-- Edited by Cheshire on Tuesday 30th of October 2018 11:25:52 PM

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Joanne  

 

Winner - Bookkeeper of the Year 2015, 2016 and 2017

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.

 



Expert

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Posts: 1641
Date:

"Yes, VAT is on the invoice but is charged at 20%, not 23%"

Of course it is - D'oh! It's a charge for a cross-border *service* within the EU, so subject to the place of supply rules.



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Vince M Hudd - Soft Rock Software

(I only came here looking for fellow apiarists...)

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