VAT dilemma

VAT dilemma

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Hi, so I'm currently preparing my end of year accounts and I've been struggling to get Sage to account for reverse charge properly, but I think I've now got it set up right (T20 for purchase of services from EU suppliers, T1 for standard UK transactions, T9 for suppliers not registered for VAT, suppliers/business customers outside EU, bank charges, transfers etc, and T24 for EU business customers buying services.)

However, having (I believe) been misinformed by the tax helpline who told me to account for all purchases of services (both consultancy related and electronic services) using the reverse charge procedure, regardless of whether they were EU based or registered for VAT, now that I'm inputting this data into Sage, I notice that none of the amounts (except the amount of VAT I was due back at the time) match.

So, the end result in terms of VAT liability is exactly the same, but I'm not sure whether I should correct the Sage VAT return to match the original one (even though this may be incorrect), leave it as it is in Sage and not report it, ignore the VAT return and just transfer the VAT liability in the journals, or report this to HMRC. 

I also notice that for some reason it's added a payment made from my director's loan account for domain name registration to the total for sales, and I'm not sure why it's done that.

Any suggestions/comments regarding anything mentioned above welcome and appreciated!

Thanks!

Replies (2)

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By geroge
26th Oct 2014 22:36

If no loss of VAT, I doubt HMRC would take you to task over it - just make sure you get it right going forward

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By nicola_1863
27th Oct 2014 09:50

Thanks

Ok, thank you. Should I just leave the return as it is in Sage then?

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