UK "Domestic Reverse Charge VAT" question

Hello. From 1st March 2021 the domestic reverse charge VAT was applied within the Construction Industry in the UK. As a subcontractor we now have to send customer invoices whereby we do not charge VAT but instead inform the customer that they must account for the VAT. However, this only applies to certain customers where particular criteria are met. In our case approximately 20 customers out of 150 active customers. Obviously, the reverse charge feature in “Manager” covers the mechanics of this.

My problem is, when creating sales invoices, we have to remember which customers this applies to. Is there likely to be a feature in the future whereby a default VAT code could be attributed to customers? (defaulting to standard VAT but changeable to Reverse Charge when applicable.) Ideally, a flag within customer edit routine to signify Reverse charge would be best, but I realise this would be too country and industry specific. Another possibility would be if a “custom field” created within the “Customers” routine could display in the “create sales invoice” routine. Some way to deal with this situation would be much appreciated (or possibly I have missed some feature that is already present!)

I am at the minute just working from a printed list of customers but even so I have (through negligence/loss of concentration) created invoices wrongly and had them returned for correction. Add to the fact the list changes with new customers and it becomes a bit messy!

Many thanks for an otherwise excellent program.

Create a custom field for customers. Name it something like VAT Scheme. Set it up to show on printed documents. If you want it to show for all your customers, make it a list with options for Reverse charge and Regular. If you only want it to show for the reverse charge customers, make it a text field and enter Reverse charge when setting up those customers.

Custom fields for customers will show at the bottom of the sales invoice. Empty ones will not display at all.

This will not automatically apply the reverse charge tax code to designated customers, but the sales invoices will contain a visible reminder.

Thanks for the prompt reply Tut. I’ve tried that (version 2 with text field) and that does help. But that field does not show on the invoice input screen unfortunately and so means I can only check the invoice once it’s printed and then amend and reprint if necessary. It is a partial solution though and at least means I can stop the invoices before they are sent to customers.

That is not true. You can View the sales invoice before printing. Anything that will be on the printed document will be on the View screen. In fact, when you create a sales invoice, you are immediately sent to View mode.

Yes, I stand corrected! That will do for my needs at the minute. Thanks for the reply Tut.