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Reverse charge vat

Question asked by Lindsay Steer 5 years ago

My client has paid for Facebook boost advertising and we have a reverse charge vat invoice. How do we show this is ClearBooks?

3 Replies

Oh Hi Lindsay,

Just spoke to you on chat :)

For other peoples benefit - head to Settings>Organisation>Toggle features>VAT & bank import tool and enable Reverse charge and EC rates if this has not been done already.

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When creating the bill make sure to select Services from EU Supplier and when creating the VAT return the system will apply the reverse charge automatically.

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We provide services to our clients, all businesses, often based in Europe. We don't charge VAT on the latter, as it is subject to the reverse charges rule. I have ticked the setting for "reverse charge and EC rates”. Invoices to European clients have been appearing in Box 8 of the VAT return, and I have filed accordingly. Today however, I’ve discovered that only goods should be listed in Box 8 - NOT services (VAT notice 700/12 section 3.9). I now need to go back and change the last 3 VAT returns.

But in future? How do I handle this within Clearbooks? Or do I simply write box 8 to “0” when filing online manually (I don’t do this via Clearbooks)?

It's ok. Found it. Need to read lower down the list. When creating the Invoice, select VAT treatment and "Services to EU customer" not "goods...."

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