Self accounting for Irish VAT on services from a non-EU supplier

Thank you for posting here in the Community, @K-GIE. Let me assist you today with your query about tax codes in QuickBooks Online.

About your concern, I suggest reaching out to your state agency to confirm what tax code applies for your non-EU supplier in QBO.

From there, you can follow the steps in this article in creating custom tax rate in QBO.

In addition, I've got this helpful resource to know more about setting up your tax. It also includes a short video for further assistance in this process.

Stay in touch if you have any other questions or concerns with QBO. I’ll be right here to answer them for you. Enjoy the rest of the day.

I appreciate your reply @Carneil_C 

This doesn't fully solve it for me but it has given me direction :)

I'll contact our tax adviser and accountant make sure this is type of self-charge is set up correctly in our books.

Thanks

Hi @K-GIE, hope all well. As an Ireland based QBO user I am experiencing the same issue - I need a reverse charge VAT code for services from non-EU countries, e.g. the UK. Would you mind sharing how you solved this problem, or worked around it? Many thanks -john

Hi John,

I have a work around, not a fix I'm afraid.

I set up a tax code NonEU-SRV-RCS with zero tax for those supplies.

Then each month I run a report for this code and post a journal to offset the self-charged VAT. 

The tax code appears on the VAT reporting but you'll have to adjust the T1 and T2 

Here's my basic steps:

In QuickBooks, click VAT choose View reports (on right hand side), then select RTD Report. Adjust the dates to the current period to finalise figure for the journal. Click on the figure for detailed report. Download report in excel. Open report and add column to calculate reverse charge VAT @ applicable rate for each expense. Save the report as backup in the period VAT folder on the shared drive (I use a shared drive for work).

Post a journal to QuickBooks debiting and crediting the VAT Payable account. I use the last day of the month as the Journal date. Attach a copy of the excel file as backup to the journal. 

Next in QuickBooks, click VAT, then choose Prepare return (on right hand side). Click adjust beside the sales VAT figure. Enter the reverse charge VAT total and enter details of adjustment, then click save. Click adjust beside the purchase VAT figure. Enter the reverse charge VAT total and enter details of adjustment, then click save. Download reports as backup.

Hope this helps.

Regards,

Karen

Hi Karen @K-GIE 

Thanks so much for your quick and very helpful response. I understand it and will give it a try. It is a great pity and a surprise that QBO does not provide non-EU Reverse Charge VAT codes especially considering that it already provides EU Reverse Charge VAT codes. I submitted feedback to the QBO Product Development Team today requesting that these codes be developed. A long shot but fingers crossed. There are surely thousands of EU businesses registered with QBO that would find these codes very helpful.

Thanks again

-john