VAT Reverse Charge

Question asked by Sarah Davidson 7 months ago

Hi,

When we deduct from our supplier where do we see on the system the deductions. Would this be on our main page? We could do with some clarification on the VAT Reverse charge functions.

Thank you.

7 Replies

Hi Sarah,

The DRC VAT is calculated on the fly and will not be recorded in the VAT control account as there is no VAT to pay. Whereas, for the end-user, they will raise a transaction without the DRC treatment but with the actual VAT rate, where the VAT will then be recorded in the VAT control account to pay to HMRC.

You can then view the VAT building up on the Dashboard.

Tommy

Hello,

But when we come to reconcile the payment it wont add up, as we haven't paid the subcontractor the VAT?? Can you advise what to do? Thanks

Fabulous, that's just what I needed. thanks

Hi Tommy, I have enabled the DRC as mentioned in section 1, however when I have gone to raise a sale invoice I do not have a VAT treatment dropdown box at the top of my invoices? Does this take 24 hours to come through to my account? Thanks Frances

Hi Frances,

I have taken a look and have noticed you are currently on a discontinued invoice creation form which does not support new updates. In this case, you must click on Preview at the very top left and click Preview again under Better Invoicing.

Once this is done, you should be able to select DRC in the VAT treatment dropdown.

tommy

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