@JohnC4 wrote:
I now post all UK invoices as 0% VAT and as there is no mechanism to recoup VAT on any UK invoice.
UK suppliers may charge whatever VAT they want. We just need to record the full amount we paid as we can't claim the UK VAT back due to Brexit.
So record the full invoice amount inclusive of VAT at 0%.
In summary, there is no VAT recorded on your UK purchases against your T2 as you can't claim it back, and also there is no impact on T1 as its Sales only.
Now recording French VAT at a different rate of 21% to our Irish rate of 23% requires a new French VAT rate to be created linked to your T2. This then allows you to reclaim it as part of your VAT return.
QB Help unfortunately has no knowledge of Irish Taxation.
Regards
JohnC
Hi @JohnC4
I think you have misunderstood. This is not about UK VAT being charged by the supplier (as an export to an overseas business this would be zero rated by the UK supplier). This is Reverse Charge VAT purely to report to IE Customs/Revenue.
As an aside, if you're reclaiming UK (or French, for that matter) VAT from IE Revenue then I suspect you're in for a bit of a telling off the next time you get a visit from the VATman. Oh, & a substantial fine for defrauding the govt. They tend to take a dim view!
This is not (particularly) Brexit related. There is & never was a mechanism for reclaiming VAT charged in one country from another's Revenue - you should be asking your French supplier(s) to zero-rate as a Reverse Charge export (they will need your IE VAT number to do this), then apply the EU RC VAT code in QBO.
Alternatively, if this supply is deemed to be in France (so not export) then you need a French VAT registration & you reclaim from FR Revenue.
Best of luck.
