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VATfrustrations
July 17, 2018
Solved

Can someone PLEASE help me to correctly add a REVERSE CHARGE VAT code in the desktop version of QB.

  • July 17, 2018
  • 28 replies
  • 71 views

I have been pulling my hair out over this one as , whatever I do, I cannot seem to get the VAT code set up correctly.  I have received a couple of purchase invoices with No VAT charged but where the VAT code on the invoice states "reverse charge".

I have selected the RC VAT code but the transactions do not show up in the "Reverse Charge list"...Either I am being daft and should only expect to see reverse charge "sales" in this list report or else I need to either amend the current code or set a new one up.

 

Best answer by Chris_H

Hi Vatfrustrations,

Thanks for your post regarding the 'Reverse Charge List' in QuickBooks Desktop.

 

It is indeed the case that only reverse charge sales transactions should populate the reverse charge list. So if you are using the RC code on any purchases you are entering in QuickBooks, don't worry at all if these aren't showing in your reverse charge list report; they shouldn't be.

Please see this GOV.UK link  for more on the reverse charge procedure, and particularly point 11 regarding the Reverse charge list.

If you have any further questions, please don't hesitate to post back.
 

28 replies

JamesC
JamesC
Level 5
July 17, 2018

Hi VATfrustations,

 

Thanks for your post, I've directed your query to one of my desktop specialists to assist you.

 

Thanks, ,

V
VATfrustrationsAuthor
July 17, 2018

Actually, I think I have this sorted now - the reverse charge element IS showing up correctly in the VAT100 report - it just doesn't show in the Reverse Charge list which I guess is actually just to show reverse charge SALES rather than purchases!

C
Chris_H
August 3, 2018

Hi Catnonie,

Thanks for joining this thread on the community!

 

You are correct in a mechanical sense, in order to get either a sale or purchase in QuickBooks to post to Vat on Sales and VAT on purchases simultaneously, a VAT group would need to be made, and applied to a custom VAT code within QuickBooks Desktop.

Just so I understand what you're trying to achieve a little more, would this Vat group you're trying to create be used on Sales/ Purchases/ or both. And would it to your knowledge also populate the Net value of sales and Net value of purchases of your VAT3 report?

Thanks in advance!

 

Chris.

C
Chris_H
August 3, 2018

Just VAT Chris thanks


Hi Catnonie,

Thank you for clarifying that.

The ideal solution, as you have already pointed out, would in theory be to create a Vat code, where a Vat group can cause the sales transaction to post to Box T1 for sales Vat, and also to Box T2 for reclaim. Unfortunately this cannot be done in the UK version of QuickBooks desktop; A vat group cannot be attached to the sales side of a Vat code.

If you don't mind, I intend to look into this for you further in order to attempt to find a feasible workaround. I will post back to this thread once I find one.

Thanks,

Chris.

C
Chris_HAnswer
July 17, 2018

Hi Vatfrustrations,

Thanks for your post regarding the 'Reverse Charge List' in QuickBooks Desktop.

 

It is indeed the case that only reverse charge sales transactions should populate the reverse charge list. So if you are using the RC code on any purchases you are entering in QuickBooks, don't worry at all if these aren't showing in your reverse charge list report; they shouldn't be.

Please see this GOV.UK link  for more on the reverse charge procedure, and particularly point 11 regarding the Reverse charge list.

If you have any further questions, please don't hesitate to post back.
 

C
catnonie
August 3, 2018

For construction VAT - not EC just within Ireland I want to set up a VAT code that applies the 23% to the T1 and T2 - I know it involves setting up a VAT group - can someone give me step by step I would be extremely grateful.  Thanks.

Graceman
Graceman
March 14, 2019

RC is not for this type of invoice use ESS or EGZ and it will all work .

The vat code are based on the historic way vat developed over years and RC was meant for the Telephone carousel system or MTCC not used for general EC trade. ESS for services EGZ for Goods is correct.

O
Oil2341
April 30, 2019

Could you please let me know if this problem has been resolved and how? 

 

I, too, have to post a purchase invoice for services from Ireland with VAT Reverse Charge applied and I cannot find the correct VAT code in Desktop Pro so that Boxes 1, 4, 6 and 7of my VAT return are populated as required by HMRC in Notice 700/12 , para 4.6.  This is even more important now MTD has arrived.  I phoned customer support and spoke to someone in the Philippines who couldn't get their head round the problem.  They told me to use the RC code, but using this code only populates Boxes 4 and 7 (two entries in Box 4, one +£20, one -£20 vat, resulting in a nil effect).

Please could someone tell me how to resolve this?  Thanks.

C
Chris_H
April 30, 2019

Hi All,

 

Thanks for contacting us here on the community. I'm sorry to hear that you didn't get the answer you needed straight away, but the below steps will make your reverse charge purchase transactions post to boxes 1, 4, 6, and 7.

 

1. Click on 'VAT' on the top toolbar.

 

2. Click 'Vat Code List'

 

3.Double click on the Vat code 'Reverse Charge (Carousel/MTIC)'

 

4. Change the Vat Item for purchases to 'Ec Purch services 20.00% group' and click O.k.

Once changed your RC transactions will post to the correct boxes.

 

Thanks, Chris.

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