Correct VAT codes

Virgo1 · ‎July 07, 2022

I want to check which VAT codes I should be using in QuickBooks online. I receive a lot of purchase invoices from Microsoft, Linked In, Google etc. many of whom are based in Ireland. On the invoices, VAT is at "0" and it often says on the invoice something like "VAT (0.000%) Reverse Charge" or "You may be required to account for VAT under the reverse charge procedure according to the local VAT rules in your country." The business I work with is based in England. They don't import goods, all of these invoices are to do with the supply of IT licences or systems? Can anyone advise please.

Ashleigh1 · ‎July 07, 2022

Hello Virgo1,

Welcome to the Community page,

Here is an article you can have a look at that tells you all about the different VAT codes we have in QuickBooks. If you are still unsure what to use we advise you speak to a trained and qualified accountant who will be able to assist you with this.

View solution in original post

Ashleigh1 · ‎July 07, 2022

Hello Virgo1,

Welcome to the Community page,

Here is an article you can have a look at that tells you all about the different VAT codes we have in QuickBooks. If you are still unsure what to use we advise you speak to a trained and qualified accountant who will be able to assist you with this.

paul72 · ‎July 07, 2022

Hi @Virgo1

Use 20.0% RC SG for these.

Ignore what the Common VAT Code article says about this being used for "goods or services bought from someone in another EU country that are classed as standard rate in the UK." This code is for Services (not Goods) from anywhere outside the UK (not just EU).

Hope this helps.

PS ... @Ashleigh1 I've pointed out in several other threads that the Common VAT Codes article contains a number of glaring errors. It needs checking & re-writing urgently!

Some of the descriptions contradict one another & some are just plain wrong (particularly post-Brexit).

Don't get me wrong - it's very useful (but only if you know which bits to ignore!).

Virgo1 · ‎July 08, 2022

Hi @paul72 Many thanks for your reply, so just to clarify even thought the actual invoice has 0% VAT on it, I still categorise it as 20.0% RC SG to account for the reverse charge? Would you happen to know if there is an "idiots" guide to using the correct VAT codes for service / goods imports/exports somewhere online as if what Ashleigh1 referred to has errors, I want to make sure that I've got the correct information. Thanks again, I really appreciate your assistance and reply.

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