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Mariavittoria
Level 1

VAT , reverse charge and Euro

hello to everybody. 
I have a huge issue. HMRC states that in an invoice we are free to invoice in any currency for the goods and services that you supply. If UK VAT is due on the transaction your invoices must also show the following in sterling:

  • the total net value of goods and services at each VAT rate
  • the amount of VAT, if any, at each rate

Everything was going smoothly BEFORE reverse charge. 

Now, after reverse charge, Your software has no template for invoices where the countevalue in Sterling is shown. The whole "last past " that before were filled is blank. 

However UK VAT IS DUE , although not to us but on Reverse charge . 

I do think the invoice templates you have are not UK HMRC compliant.. please let me know when You plan to fix this.

Solved
Best answer March 24, 2021

Accepted Solutions
John C
QuickBooks Team

VAT , reverse charge and Euro

Hi Mariavittoria To be compliant with current VAT legislation the VAT amount has to be shown in Sterling, as the VAT amount is £0 the invoice is compliant. 

View solution in original post

5 REPLIES 5
EmmaM
QuickBooks Team

VAT , reverse charge and Euro

Hello Mariavittoria, To confirm you are creating the invoice in non GBP but they are subject to reverse charge and you want the figure of VAT to show in the invoice in GBP? The reverse charge code as long as you have the code you do not have to show the amount on the invoice see the 'what do I need to include in my invoices' at this link, in particular, this bit 'the rate of VAT if the VAT amount cannot be shown, but the VAT should not be included in the amount charged to the customer'. 

Mariavittoria
Level 1

VAT , reverse charge and Euro

Emma, I don't care about the figure of VAT.  

I am making invoices in Euro. 

The problem is the EXCHANGE RATE. In the whole invoice NO AMOUNT IN GBP is written. This is not compliant to VAT regulation in the UK , to my understanding. 

When VAT was 20%, at the end of the invoice Your standard layout had a full description ( with VAT and Total amount)  both in Euro and GBP . This made the invoice compliant. Now this does not happen.. 

Right now I am making this by hand. You understand this makes no sense. My clients ( and my acountancy) do not accept an invoice which is subjet to UK VAT ( althogh 0) which has no GBP value on that.  

 

EmmaM
QuickBooks Team

VAT , reverse charge and Euro

Helllo Mariavittoria, Are you talking about the RC CIS rates or the 0.0% RC normal/standard code?

Mariavittoria
Level 1

VAT , reverse charge and Euro

yes

John C
QuickBooks Team

VAT , reverse charge and Euro

Hi Mariavittoria To be compliant with current VAT legislation the VAT amount has to be shown in Sterling, as the VAT amount is £0 the invoice is compliant. 

View solution in original post