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VAT REVERSE CHARGE

Hi  we are a small medium sized business using quickbooks 2018 desktop Pro

 

Does anyone know how to handle the reverse charge VAT for this product please,   I understand from quickbooks that an upgrade or fix for this is not currently available.

 

Many thanks

6 REPLIES 6
QuickBooks Team

Re: VAT REVERSE CHARGE

Hi there Lany1521,

Welcome to the community!

With regards reverse charge VAT in QuickBooks desktop, there is an already existing code which can be used when posting relevant reverse charge transactions. In the VAT code list, the name is Reverse Charge (Carousel/MTIC) and when used on a transaction it shows up as 'RC.'

However, when the Reverse charge code is used on purchases, as per HMRC, this should post to boxes, 4 and 7 on the Vat 100 on the purchases side, and also to boxes 1 and 6 on the sales side of the. In some cases by default QuickBooks does not post to box 6 , net value of sales.

If this is the issue you are facing on your company file, please follow the below instructions to correct it.

1. navigate to the 'Item' list from the lists menu on the top toolbar, and then find the 'Vat group' in the list called 'Reverse Charge Purchases 20% group.' Vat groups are usually at the bottom of the list.

2. Double click on this group, and under the Vat Item section, click on the second item, 'Reverse Charge Purchases Standard.' Click on the drop down, and instead select the VAT item to 'EC Purchase Services Standard'

3. Once this has changed over in the 'Vat Item' section, click 'O.K' and this group will save.

As this group is attached to the RC code in QuickBooks desktop, when used going forward this code will not post correctly when used on purchases to boxes 1, 4, 6 and 7 of the VAT 100 report.

If you have any further questions or queries, please feel free to post back!




 

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Re: VAT REVERSE CHARGE

Hi Chris - thanks so much for your detailed response.

 

Unfortunately in QuickBooks Pro Desktop 2018 version there is no Reverse Charge (Carousel/MTIC) code set up at all.  I have attached a screen print of the existing set codes within our current desk top version.

 

Hope this makes sense - thanks Chris.

 

Kind Regards - Elaine

 

 

QuickBooks Team

Re: VAT REVERSE CHARGE

Hello Elaine

 

Thanks for the screen shot. It should be in that Vat code list. Can we just ask you to check in the vat code drop down on that page>click show inactive VAT codes does it show in there?

 

Emma

 

 

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Re: VAT REVERSE CHARGE

Thanks Emma

 

Yes I've found it in the inactivated codes - I will try a couple of scenarios to see how I get along and report back :)

 

Thanks for your help

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Re: VAT REVERSE CHARGE

Hi

 

I have tried a sampler bill on quickbooks using the code, however it seems to calculate incorrectly as expecting the vat element to be £200.00 and not as posted - it  also doesn't post to box 6 as per sampler report attached.

 

Any thoughts would be much appreciated.

QuickBooks Team

Re: VAT REVERSE CHARGE

Hello Elaine

 

Glad you found the code.

From looking at the information that you provided it looks like that code might be set to an old rate of 17.5%. Can we ask you to check in item list  and then double click on the standard purchases and reverse charge purchase standard and make sure they are both set to 20 %

 

Let us know how you get on

 

Emma