The reverse charge only applies to the sale and purchase of the specified goods and services listed in section 3:
Key conditions
between UK taxable persons
for mobile phones and computer chips, where the VAT-exclusive value of the supply is above the de minimis limit, section 6 and where the goods and services are bought and sold for business use
This guide will cover both the sale and the purchase elements within domestic reverse charge.
Sales
Navigation: Bookkeeping >> Choose the client >> Sales >> Invoices >> Create New Invoice
Alternatively click here to be redirected.
Please note: When domestic reverse charge is being applied to sales it can only be applied to Sales (1000) and Domestic Sales (1020) accounts.
Once the account has been selected to sales (1000) or domestic sales (1020). The VAT rate needs to be set to RC-S (20%). Once this is done the Domestic reverse charge rate will apply to the sale.
Purchases
Bookkeeping >> Choose the client >> Purchases >> Add New Purchases
Alternatively click here to be redirected.
Please note: When domestic reverse charge is being applied to purchases please choose the account '12130 - Domestic Purchases'. Under the VAT you will need to include RC-S (20%).
