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VAT incorrectly charged under VAT MOSS

VAT incorrectly charged under VAT MOSS

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Hi,

A Ltd Co client has been charged 20% VAT by Dropbox International Unlimited Company VAT ID IE etc.

I assume that the client has not provided Dropbox with their VAT number so this has been incorrectly processed via VAT MOSS hence the 20% VAT rate.

I will be suggesting that the client contact Dropbox and get the invoice re-issued showing a reverse charge.

However, I fully expect that the client will not bother to do this so I wondered how it should be included in the VAT Return as it is using Xero.

Should the VAT inclusive amount be entered as Tax Rate 'Reverse Charge Expenses (20%)'?

Thanks in advance.

 

 

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chips_at_mattersey
By Les Howard
20th Sep 2020 20:43

Your client should use the Reverse Charge. But should notify Dropbox so that future invoices are VAT free.
(It’s not a VATMOSS supply.)

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