I just want to confirm which code I should be using to account for RC purchases such as Google Adwords?

Anonymous · ‎February 07, 2019

Ok, so now that I have Quickbooks Online, I now see the ECS VAT codes as well as the RC. Now I just want to confirm which code I should be using to account for RC purchases such as Google Adwords? The main difference I see is that ECS 20% inputs into box 2 on the VAT return and RC into box 1. I have always used RC in the past, do I continue to use that?

Gordon · ‎February 07, 2019

Its a service so ESS is correct code or ECS in Online the RC was specific for another type of Reverse charge code.

Has to post to boxes 1, 6, 4, & 7

Anonymous · ‎February 07, 2019

Well RC posts to 1, 6, 4 and 7 and ECS posts to 2, 6 4 and 7 so surely I need RC then?

Gordon · ‎February 07, 2019

There are two RC codes which one did you use? ECS should post to 1, 6, 4 & 7 box 2 is acquisitions and normally relates to goods.
Just run vat using ECS and post to 1, 4, 6 & 7 so not sure why yours should post to box 2 please check

Anonymous · ‎February 07, 2019

Well, when I contacted support (who ultimately weren't very helpful) they directed me to this: <a rel="nofollow" target="_blank" href="https://community.intuit.com/articles/1430086-vat-codes-ec-member-state">https://community.intuit.co...> I only have one RC code

Gordon · ‎February 07, 2019

To check all this out you can run postings and vat return for today so it all shows the postings. Use the Intuit test drive not your own accounts and its all clear. The important point is the postings to the correct box .
There are two RC code one is for telephones and has SG appended to the code with a space. in certain circumstances the SG is cropped off.
But I can assure you ECS is correct its a code that came across from desktop and was specific for the Vat change that required this code.

Anonymous · ‎February 07, 2019

Well I have just changed the code form RC to ECS (20%) for relevant purchases this VAT quarter and in my report, all boxes are the same except box 6 where it has included the amounts (it didn't under RC). I will use this in future as the whole reason for me to check if there had been a change is that the last two VAT returns I have filed flagged the warning: Based on the current rate of VAT, the amount you have entered in Box 1 exceeds the amount HM Revenue & Customs would have expected you to declare in comparison to the value you have entered in Box 6. Although I was paying the correct VAT, QB was obviously not showing the correct amount in box 6 using RC. Thanks for your help - you have been much more helpful than QB support!

Gordon · ‎February 07, 2019

Thats why I do not trust the RC code it was never right from the start of online. Its a hang over from an old code before the Vat changes in 2015.

Anonymous · ‎February 07, 2019

Well thanks for clearing it up for me. In the 'old days' I had to set an RC code up myself in SimpleStart and it never applied the totals correctly to the boxes then. However, at some point it seemed to do it correctly so I have stuck with it until HMRC started flagging up the anomaly. (must admit I had stopped double checking as I trusted my accounting system was doing it right)

Will use ECS going forward - thank you!

AshH · ‎February 07, 2019

Hi lisa.

Thank you for contacting Community.

On QuickBooks you would be able to access a breakdown of the names of the VAT codes on the system. You can find this by going to the taxes page and clicking Edit VAT in the top right corner and selecting Edit Rates. This would provide a description of VAT codes available.

Unfortunately we would not be able to provide advice on the suitability of the VAT codes, as we are only specialists in the QuickBooks Product. I would recommend speaking with HMRC directly. I will include a link to their contact details and their VAT page here.

emmam6 · ‎November 22, 2022

Hello Community Users! We just wanted to pop in and update this thread with the most up to date VAT codes available in Quickbooks, with all the changes in the past few years, which you can find here

Any questions feel free to ask. We'd always recommend conferring with HMRC if you're unsure which code to use or an accountant, though the article at the link advises where the codes hit on the return and an explanation of the code itself

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I just want to confirm which code I should be using to account for RC purchases such as Google Adwords?