Commusoft has developed a 'Reverse VAT charge; option to accommodate the recent changes implemented by HMRC. As it stands, this feature will only be available for our Xero accounting integration, with further integration.
- When creating an invoice, we will now provide the option to mark a 'Reverse VAT' charge as displayed below:
- When creating customer or supplier invoices, you will have the option (as well as the existing 0%, 5%, 20%) to use a VAT reverse charge. This is similar to a 0% rate of VAT, with the difference that you will not be paying anything to HMRC or reclaiming anything either. Quite simply, when a reverse charge is applied, the recipient of the service/goods makes a declaration for both their purchase and their supplier's sale, effectively cancelling one another out.
- This charge will be marked as a 'Domestic reverse charge' at varying percentages: