Can anyone tell me which VAT codes I should be using for mobile phone roaming charges?

Good afternoon @tracey2972 

Use Z=0% or Exempt - both have the same effect on the VAT Return.

Do not use NoVAT - that code does not record to the VAT Return at all.

Do not use any of the EC/EU VAT codes - unless you're in Northern Ireland they are no longer relevant but QB seems to insist on keeping them (which would be OK if the information about them was updated).

Hope this helps.

Hi

Thanks for your help.

I've been using E for the last year but for some reason my accountant has now decided I should be using the ECS0% for intra-EU B2B - I'm sure that's wrong because our customers are UK based, it's that some of the usage is roaming.

I think what your accountant is trying to replicate is this...

https://www.gov.uk/government/publications/vat-telecommunication-services-used-outside-the-eu/vat-te...

In 2017, UK VAT was added to roaming charges for consumers (but not businesses).  This was due to a change in the interpretation of the Place of Supply for B2C.

I haven't read the full text but it looks like Place of Supply for B2B remained unchanged - which leaves it open to confusion. It would be considerably easier if phone companies charged B2C & B2B with UK VAT which businesses would then reclaim (I know our supplier - O2 - zero rates all roaming on our business account).

If your accountant insists it should be Reverse Charged then the code to use would be 20.0%RCSG (we are no longer in the EU so should not be using an EC/EU VAT Code ... & certainly not ECS0% which was for services that would be zero-rated anyway).

NB: the description in the above-linked thread VAT codes in QuickBooks Online: A complete guide is wrong - 20%RCSG is the Rest of World equivalent of 20.0% ECS - Intra EU B2B purchase of services.

Just to reassure slightly - whichever one of these codes you use, it will make no difference to the VAT you actually pay to HMRC:

    Z=0% / Exempt both post £nil to to Box 4.

    The RC codes post ±VAT to Box 1 and 4 - which cancel out.

The codes obviously have different effects on Box 6/7 but these are less important to the VATman.