VAT Reverse Charge Procedure

[sbailey]

Is there a relatively simple way of handling the VAT reverse charge procedure when entering bills in QB2003, or do most people work out the adjustments manually when they do their return?

I am thinking in particular of handling US online services, like Google Adwords.

I haven't seen this mentioned anywhere, but I imagine it will be a lot more common now with the new online trading regulations.

Stephen

[hartford]

Hi Bailey
The simple answer to your question is I think there is no simple way of dealing with VAT on "reverse charges" in Quickbooks.
The reverse charge procedure normally "blows peoples minds" and is part of the "Alice in Wonderland" area of VAT.
At its most extreme it involves non VAT registered organisations (even charities) who receive services from abroad (advertising services from the Channel Islands without VAT was the mischief the legislation had to stamp on) pretending they make a supply of these services so having to register for VAT.
I don't come across this area often so I can't claim to be experienced.
Intuit can hardly get or want to get their heads around normal VAT as you will see from this forum.
Therefore I think you will need to tailor make a solution & if its a small volume on Excel.
Not sure what Google adwords are or the recent VAT changes on online services. I can't keep up!!

[VicMoreland]

The easiest way to deal with reverse charge VAT is to use one of the spare vat codes for items which will attract the reverse charge. Use a rate of zero since there will not be a charge to you.

Then at the end of the VAT quarter, use the figures in the reverse charge code to calculate the imput and output and manually adjust the vat100 report, or put through a journal.

Vic

[sbailey]

Many thanks, both.

Stephen