Another improvement to our accounting software based on feedback from our customers:
When you purchase services (as opposed to goods) from suppliers in other EC countries, you need to report this on your VAT return using what HMRC call a “reverse charge”. It makes no difference to the actual amount you pay HMRC.
We’ve improved our support for this now. When you run a VAT report, there is a a button at the bottom labelled “Download Calculations”. This gives you a spreadsheet detailing how the VAT return figures were calculated and now includes a section specifically for listing the reverse charge items.