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A
Apollo Cleaning
April 16, 2025
Question

VAT reverser charge

  • April 16, 2025
  • 1 reply
  • 0 views

What amount do you post the bill on QB with a VAT reverse charge. We have activated the reverse charge on QB so assuming we post the amount without VAT and select the reverse charge code while making payment? Is this correct? It's the first time we are doing this - any help will much appreciated.

1 reply

B
BabyB
April 16, 2025

You have to select the VAT code upon creating the bill instead of when making the payment, Apollo. I'll provide more information about this below.

 

The option to choose a VAT code when paying your bills through the Pay Bills feature is currently unavailable in QuickBooks Online. Including the VAT code in the bill ensures the system automatically accounts for the reverse charge.

 

Additionally, the amount will depend on how much you owe to the supplier. You can review the contracts to decide if the reverse charge will apply to the services you received. Also, ensure to inform your suppliers. If you need further guidance, you can consult your accountant.

 

For more details, please refer to this article: VAT domestic reverse charge for building and construction services.

 

Furthermore, you can run a VAT report to track how much you owe to ensure your VAT return is accurate before sending it to the HMRC.

 

You're always welcome to post again if you need further assistance managing your VAT reverse charge. I'm here to help you in any way I can.

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