In summary, the Reverse Charge applies if you buy a B2B service (except for exempt supplies) from outside of the UK even if they have a UK VAT registration number.

You calculate the amount of VAT (output tax) on the full value of the services supplied to you and then enter on your VAT Return the:

  • amount of VAT you calculated in box 1 and, if you’re entitled to reclaim the VAT on your purchase of these supplies, also put the same figure in box 4 (this in effect cancels out the figure in box 1)
  • full value of the supply in both box 6 and box 7

The example below shows a VAT Return completed where a VATable service for £100.00 has been purchased from a company outside of the UK:

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