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Level 1

If using the 20% RC SG code for reverse charges the VAT is being calculated incorrectly on the gross and not on the net amount am I using the incorrect VAT code?

The amounts do not agree to the purchase invoices, I have tried using both inclusive and exclusive options but neither are correct.

10 REPLIES 10
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Level 4

If using the 20% RC SG code for reverse charges the VAT is being calculated incorrectly on the gross and not on the net amount am I using the incorrect VAT code?

The RC code should not be used for reverse charge vat

Use Ecs which correctly posts to boxes 1 4 6 & 7

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Level 1

If using the 20% RC SG code for reverse charges the VAT is being calculated incorrectly on the gross and not on the net amount am I using the incorrect VAT code?

WHAT ABOUT BOX 9, if you use ECS thats for services which dont go in Box 9, but good do?
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Level 1

If using the 20% RC SG code for reverse charges the VAT is being calculated incorrectly on the gross and not on the net amount am I using the incorrect VAT code?

although just worked out if you use ECG that adds to box 9, as its a good :) Doh!
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Level 4

If using the 20% RC SG code for reverse charges the VAT is being calculated incorrectly on the gross and not on the net amount am I using the incorrect VAT code?

Yes ECG is the Goods code then box 9 is used.
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Level 1

If using the 20% RC SG code for reverse charges the VAT is being calculated incorrectly on the gross and not on the net amount am I using the incorrect VAT code?

This doesn’t answer the question about why the code makes incorrect calculations when assigned to a bill. Various QB sources/support staff recommend using this code for non-EC reverse charge purchases (e.g. b2b service from USA) - yet the code removes value from the purchase when assigned.

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QuickBooks Team

If using the 20% RC SG code for reverse charges the VAT is being calculated incorrectly on the gross and not on the net amount am I using the incorrect VAT code?

Hi sirob,

 

It's best if we can have visuals on your tax setup so we can see why the 20% RC SG calculates incorrectly. I'd encourage you to get in touch with our email support so they can do further checking on this. Please follow the steps below:

  1. Open this link: https://help.quickbooks.intuit.com/en/contact.
  2. Select QuickBooks Online.
  3. Click on Search for something else and paste your question on the box.
  4. Scroll down and click on Send Email.

You can always join us back here if you need anything else.

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Level 1

If using the 20% RC SG code for reverse charges the VAT is being calculated incorrectly on the gross and not on the net amount am I using the incorrect VAT code?

Hi Gordon,

I have an EC service from Spain for admin.  They are registered for VAT in Spain and we are in England.  I entered it as ECS 20%, which I presumed put 20% on, then took it off, but it does not seem to working correctly with the VAT figures

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QuickBooks Team

If using the 20% RC SG code for reverse charges the VAT is being calculated incorrectly on the gross and not on the net amount am I using the incorrect VAT code?

Hi Online24

 

When you state that it doesn't seem to be working correctly with the VAT figures, what is actually not working?

When you use a ECS 20% code it will populate in Box1, Box 4, Box 6 and 7, it will increase your liability and then negate it, put it on/take it off 

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Level 1

If using the 20% RC SG code for reverse charges the VAT is being calculated incorrectly on the gross and not on the net amount am I using the incorrect VAT code?

Hi John,

Thank you for your message, I have checked back on my VAT return and it does seem to be doing what you say.  Can you just confirm that I should use VAT code ECS 20% for a service from EC.

Thank you 

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QuickBooks Team

If using the 20% RC SG code for reverse charges the VAT is being calculated incorrectly on the gross and not on the net amount am I using the incorrect VAT code?

Hi Online24,

 

We're unable to confirm the VAT code which you should be using for transactions in relation to your account. If you are unsure as to which code should be used on a product or service we would suggest confirming with the HMRC, this link here may be useful if this doesn't provide the necessary detail we would suggest contacting HMRC for further guidance.

 

Please let us know if there is anything further which we're able to help with.