VAT reporting of EU purchases and reverse charge

Sorry to hear that Markus! Perhaps we will see you back one day when we have support for different regions :)

Best of luck, John

Good afternoon John,

I fear I have to regard my evaluation of Clearbooks as failed. Over and above the VAT reporting, I would need to do the reverse charge transactions manually, which is exactly what I wanted to avoid.

Not the fault of clearbooks, more like my fault for trying to apply clearbooks to a region, where it is not intended for.

But I would like to explicitly thanks you for your and your colleagues helpful support. Spotless!

Regards

Markus

Hi Markus,

At the moment there wouldn't be much point using a VAT treatment on invoices when using a custom tax scheme as these only have an affect when running a return on either the Flat rate or standard scheme. Unfortunately using one of these schemes would mean that you are unable to create your own tax rates, so at the moment it's a bit of a catch 22.

The returns are tailored to all the specific UK needs - I wouldn't really recommend using the VAT return to produce anything other than a UK based return. from it. However you could tailor all the names of your sales tax codes - you could perhaps have one specifically named services from EU supplier. You could then run a VAT return and be able to know exactly which bills to apply any specific rules to.

Hi Paul and John,

thanks for your help.

In regards to the reporting, we are a Cyprus based company and the VAT submission form here is very similar to the UK version, but unfortunately expects me to report Purchases of Goods and services separately. So I need this.

in regards to the customer scheme, indeed I changed to that one, because here in Cyprus our VAT rates are 19% and 5% respectively. Can I achieve the same with the standard scheme, but somehow change the rates?

Regards

Markus

Hi Markus,

On your account you have a custom tax scheme set up to begin on the 19th March - the VAT treatments won't work on this scheme which is perhaps why they are reverting the VAT rate to out of scope. You have a standard VAT scheme set up between 4th Jan 11 and 18th March - if you create a bill with a date during this period then the VAT treatment should stick.

Hi Markus, for what it's worth, and subject to what Michael finds, are you setting the VAT rate to 0%?

The reverse charge 20% VAT is not part of the bookkeeping but it will show in boxes 1 & 4 of the VAT return.

Hi Michael,

It's a very basic test setup right now. The supplier is called "test supplier" and he has two purchase bills associated.

interesting enough it only happens with PU000002

Hi Michael,

I found the VAT treatment after I "toggled" the feature on in the company settings.

Now for testing I created a supplier with VAT registration and created a bill with that Supplier and choose VAT treatment "Services from EU Supplier", but on saving the bill the system always reverses the setting to "Out of scope - Not on VAT return"?

It also does not create any VAT related journal entries (for teh revers charge).

What am I doing wrong?

Hello Markus,

You have the option to select either Goods or Services in the VAT treatment section allowing you to differentiate between the two.

Also, the reverse charge will apply based on what VAT treatment you select for each of your transactions.

Kind regards,

Michael