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dmcomputing
January 18, 2021
Question

Vat Changes in Ireland after Brexit

  • January 18, 2021
  • 2 replies
  • 0 views

Hi

We are based in the Republic of Ireland and are currently using Quickbooks Desktop Pro 2020.

We occasionally purchase products from UK-based suppliers.

Obviously, since the beginning of this year, we can no longer use the EU vat codes to account for the vat.
How are any other Irish users managing this or does anyone know if Intuit plan to upgrade (or may have already done so) the product to include either new vat codes or the new boxes that will be available on the next Vat return to Revenue?

    2 replies

    JasroV
    JasroV
    January 18, 2021

    Nice to have you in the Community space, @dmcomputing.

     

    Allow me to share with you some insights on how to record this in your QuickBooks Desktop (QBDT).

     

    When you purchase goods from a UK VAT-registered supplier, the VAT code that you should use is the Standard (S) VAT code as this is reclaimed from HMRC.

     

    Same goes when you sale goods to a UK VAT-registered customer, the code you should use is S VAT code. This way, the customer will claim the VAT back in their VAT return, and we pay the VAT portion to HMRC.

     

    To learn more about this you can utilize this link for reference: Brexit FAQ.  

     

    As a workaround, you'll want to create a temporary VAT Change for Ireland. Then, to stay current on the latest news and updates about QuickBooks, I recommend checking our Blog page from time to time.

     

    In addition to this, it would also best to work with an tax expert or with your accountant for further guidance in recording this. This way, we can ensure you enter your VAT codes correctly in QuickBooks.

     

    Lastly, I’m attaching this link that you can read for guidance in filing your VAT return in QBDT: How to submit a VAT return to HMRC (MTD for QuickBooks Desktop).

     

    Keep me posted if you have any other concerns or questions about managing your VAT. I’ll be around ready to lend a hand. Have a good one.

    A
    AxonWare
    November 8, 2021

    <<Lastly, I’m attaching this link that you can read for guidance in filing your VAT return in QBDT: How to submit a VAT return to HMRC (MTD for QuickBooks Desktop).>>

     

    This bit on MTD is not relevant for Irish only registered desktop users.

     

    Desktop users in Ireland should consider a moving to QuickBooks Online Irish edition. Contact AxonWare.ie for this

    D
    dmcomputingAuthor
    January 18, 2021

    Hi JasroV

    Thanks for the reply below. However, your answer seems to apply to UK based companies whereas we are based in the Republic of Ireland. I've also been using Quickbooks Desktop for over 10 years so am very familiar with using VAT in QB and have had to make numerous changes to VAT codes down through the years.

    We have been able to use the EC codes for purchases from UK companies up to Dec but this will no longer work and we will have to report Vat separately to Revenue in Ireland for EU purchases and UK purchases. Revenue are adding more boxes to the Vat returns to capture the UK purchases. This will require changes to QB if we are to be able to use the File Vat or Vat report feature so that the correct figures can be transcribed onto the Vat returns.

     

      R
      ReyJohn_D
      January 18, 2021

      I can share a couple of information about VAT codes in QuickBooks Desktop, @dmcomputing.

       

      Yes, you're correct. You're now unable to use the EC or EU VAT codes for purchases from UK-based companies due to the Brexit impact or incident. Thus, you'll have to report VAT separately to Revenue in Ireland and another to the UK for the purchased goods or services.

       

      For more insights, please review this article: Get ready for the Brexit impact on business.

       

      Also, there's a temporary VAT change in QBDT Ireland wherein you'll have to create a VAT code and associated VAT items manually.

       

      We appreciate your feedback on this one and recognize your need for this feature. Thus, I recommend visiting our QuickBooks blog page to get you in the loop about the recent news and product developments.

       

      When you're ready, you can submit your VAT returns as you now do.

       

      I'm still around to answer any VAT-related questions you may have. Just add the details below and I'll get back to you as quickly as I can. Take care always!

      J
      JohnC4
      May 19, 2021

      Dear ReyJohn,

       

      Has Quickbook updated the codes for QB Online to allow Irish Customers to enter in UK invoices?

      Should there be a 'Purchases from UK suppliers' or similar?

       

      This thread ends is having users contact a third party to resolve the issue and I do not see any solution being put forward by Quick Books.

       

      Can you please advise.

       

      Rgeards

       

      John

       

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