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SARAHSYGROVE
September 14, 2021
Solved

VAT on services after Brexit for both buying and selling in EU and further afield

  • September 14, 2021
  • 1 reply
  • 0 views

Hi ,

I have been reading about post Brexit changes for hours and I seem to keep reading conflicting information. Can I ask your advice please?

Sales

We are UK Vat registered and sell services to Germany. We did invoice at 0.0 % E.C.S and state reverse charge should be applied. This seems to be no longer correct? Should it now be 'No Vat' in QB with no 'reverse charge' comment on the invoice - 

Purchases

We buy services from EU suppliers - Reverse charging still seems to apply ? 20.0% E.C.S. We pass the service on to UK clients and also non EU clients .  Is that relevant for place of supply and whether I should be using 20.0% E.C.S, or No Vat?

We also buy services from non EU Suppliers - I read today that reverse charging should have been applied - I had no clue. I took over suppliers in QB which were mostly set up as 'no VAT' - would that be due to place of supply as we pass on the service to non EU?

Best answer by GeorgiaC

A simple response to a simple question would have been more useful.

Again:

What code should be used when selling services from UK to EU?

There can be only one, What is it!!!!!

 

The link shared was not useful, what on earth does 'intra' mean!!!!!

 

A SIMPLE ANSWER PLEASE - ONE CODE - JUST ONE WITH NO OTHER CONFUSING ADDITIONAL INFORMATION!


Hi 123145858365249, thanks for joining this thread - we're unable to advice on a specific VAT code to use, we'd recommend reaching out to an accountant/bookkeeping professional if you're unsure. 🙏

1 reply

R
Rea_M
September 14, 2021

Let me share details about VAT on services after Brexit for both buying and selling in the EU with QuickBooks Online (QBO), @SARAHSYGROVE.

 

There will be VAT code changes from 1 January 2021. UK VAT registered businesses may need to consider reviewing Import VAT (also known as PVA Import or Postponed VAT accounting), which must be reflected in the VAT return.

 

When your business receives imported goods from outside of the UK and is registered for VAT in the UK, you may be required to review the Import VAT on your VAT return. However, there will be no changes to the treatment of VAT or how you account for the movement of goods between Northern Ireland and the EU.

 

Then, once you purchase goods from another business that is registered for VAT in an EC Member State, you should not be charged VAT if you give the supplier your VAT registration number. The supplier will then charge you under the reverse charge mechanism, and you can then account for the VAT at the rate applicable in your country.

 

Due to postponed VAT accounting, there will be changes to the way you complete the boxes on your VAT return. To know the appropriate VAT codes to use, I'd recommend checking out this article: QuickBooks VAT codes.

 

Also, I'm adding these articles to answer the most commonly asked questions about the Brexit VAT: 

 

 

Let me know in the comments if you have other VAT concerns in QBO. I'm always around to help. Take care, and I wish you continued success, @SARAHSYGROVE.

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SARAHSYGROVEAuthor
September 15, 2021

Rea_M,

Thanks for your response.  There did seem to be a heavy emphasis on goods , not services which my query related to. I know there are differences between the two which means I am still not clear .  I think you are saying that for our service purchases from EC that reverse charge still applies . What about purchases from outside the EC and especially where we then pass the service on to a client who is not in the UK?

Also - you did not address the query relating to our Sales of a service into the EC . Should that still be 0.0% ECS, or should it now be 'No VAT'

Thank you

A
Ashleigh1
September 15, 2021

Hello Sarahswygrove, if you have a look at this link it tells and explains what the codes are and if you are still unsure which to select then we advise you speak and ask a trained and qualified accountant to clarify which to use as we are not trained accountants just technical support. 

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