Google G-Suite VAT type?

One Auto · ‎April 06, 2020

Hi,

Sorry im new to VAT and require some advice on which VAT type i should use.

The Invoice was sent by Google Ireland for G-Suite Service.

The Invoice shows 0% VAT but below this is a line of text statating : "Services subject to the reverse charge - VAT to be accounted for by the recipient as per Article 196 of Council Directive 2006/112/EC"

Can i zero VAT the Invoice?

Thanks

Chris

paul72 · ‎April 16, 2020

Hi @One Auto

As per, @ReinTrading's perfectly correct "rant" here : https://quickbooks.intuit.com/learn-support/en-uk/vat/proof-reverse-charge-vat-codes-wrong-in-qbo/01...

please ignore the descriptions you see inside QBO (when you click on the COG & Manage VAT Rates).

https://quickbooks.intuit.com/learn-support/en-uk/vat/common-vat-codes/00/239529

is better.

Google Ireland have zero rated the supply because you gave them your UK VAT number - this is Intra EU B2B Supply of Services (not Goods) = 20.0% ECS

Hope this helps.

View solution in original post

MarsStephanieL · ‎April 06, 2020

Hi there, One Auto.

There are variables of what VAT type you are going to choose, I suggest consulting to your tax adviser or revenue commissioner then you can mention the message to them as well.

You can check this article to give you more information about VAT: VAT: Getting Started.

I'm happy that you drop by the Community, let me know if you need anything else. I'll be here to help. Take care.

paul72 · ‎April 16, 2020

Hi @One Auto

As per, @ReinTrading's perfectly correct "rant" here : https://quickbooks.intuit.com/learn-support/en-uk/vat/proof-reverse-charge-vat-codes-wrong-in-qbo/01...

please ignore the descriptions you see inside QBO (when you click on the COG & Manage VAT Rates).

https://quickbooks.intuit.com/learn-support/en-uk/vat/common-vat-codes/00/239529

is better.

Google Ireland have zero rated the supply because you gave them your UK VAT number - this is Intra EU B2B Supply of Services (not Goods) = 20.0% ECS

Hope this helps.

ReinTrading · ‎April 16, 2020

Hi @One Auto - completely ignore @MarsStephanieL's useless advice.

@paul72 is correct

One Auto · ‎April 17, 2020

Thanks for the help.

I never gave my VAT number to Google when i setup up as i wasnt VAT registered then!

Does it matter?

paul72 · ‎April 17, 2020

@One Auto wrote:
Thanks for the help.

I never gave my VAT number to Google when i setup up as i wasnt VAT registered then!

Does it matter?

Short answer is no, don't worry about it.

They haven't charged you VAT (UK or Irish) so there's nothing to reclaim & by using the 20ECS VAT code you're accounting for the Reverse Charge correctly.

The long answer involves the differences in deemed Place of Supply for B2B & B2C - and, I think the rules for Digital Services are different again. TBH it's beyond me!

Google probably assumes that all GSuite subscribers are VAT registered businesses & applies the simpler B2B rules.

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Google G-Suite VAT type?