Hi, I'm looking for guidance for entering invoices for digital services bought outside UK where VAT is not charged, like Dropbox, Shopify and others. I understand that VAT must be paid and also reclaimed through a reverse charge procedure.
When I tried using the RC VAT code it behaved strangely. Say the invoice was for £100 for cloud services, so I'd have to account for £20 VAT as due and then reclaim. However, on the VAT 100 report in QB, it showed the whole £100 as the due tax which is wrong. When I then made a notional sale for £120 to reclaim the VAT, I'm only reclaiming £20. So something seems wrong..
Is there any guidance or example for this?
Thanks
