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VAT Return - Detailed report shows incorrect figures for UK reverse charge VAT Rates

Updated over a week ago

The UK Government Tax Authority (HMRC) website provides comprehensive guidance on the VAT rules for the return, and this should always be used as guidance for any VAT question as it will cover the latest UK law.
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As an example, as of 28th October 2022 the HMRC note on completing the VAT return in regard to reverse charge VAT rates states

VAT on sales

Suppliers must not enter any output tax on sales under the reverse charge. The supplier only needs to enter the net value of the sale.

VAT on purchases

If you buy services subject to the reverse charge, you must enter the VAT charged as output tax on your VAT return. Make sure you do not enter the net value of the purchase as a net sale.
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You may reclaim the input tax on your reverse charge purchases, subject to the normal VAT rules. The current latest version of Dimension 3.00a meets these requirements as follows

VAT on sales (Output Tax)

Goods amount only shown for output tax

VAT on Purchases (Input Tax)

Vat charged entered as output tax, but also since you can reclaim the input tax it must show input vat amount, so Dimensions shows the reverse charge against input VAT as well.

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