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Add support for reverse VAT charging to customers

If you tick options for a customer to say they are VAT registered in another EC country, when you create an invoice, the VAT rate defaults to zero.

This suggests Kashflow is geared to support reverse VAT charging to customers

HOWEVER, when you export the EC Sales List for import to HMRC, every customer has a status of 0.

Having spoken with support, they stipulate Kashflow does not support any method of reverse VAT charging for customers (in contrast to suppliers).

This is confusing, as you have to ensure that you remember to

a) change the status code on the EC Sales List export to 3 for those VAT registered customers who used the reverse charging mechanism
b) ensure that the VAT is added to invoices for those customers who are VAT registered in another EC Country.

This seems like a halfway house which does not help anyone and simply confuses matters.

I wonder what happens to these where your EC sales list is automatically submitted along with your VAT return?

  • Rich Mellor
  • Oct 24 2019
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  • Paul Smith commented
    24 Oct, 2019 12:40pm

    Hmm, oddly, I've been having other problems with ECSL in Kashflow, and just checked this, and here, it seems to use code '0' if 'Include sales of this code to customers in other EC states in Box 8 of my VAT return' is checked in the relevant Sales Code's settings, or code '3' if that box isn't checked.

    That looks correct to me (for sales of services, they should not be included in Box 8)

    This is at least the case in the Reports -> Tax -> EC Sales List download (I don't know about autosubmitted ones, as that's my other problem I'm having).