How to handle Reverse Charge VAT

Created by David Joyce, Modified on Fri, 16 Apr, 2021 at 9:30 PM by David Joyce

If you have sub-contractors, there are specific VAT compliance rules, eg. Reverse Charge VAT (RCV), where you, as the Principal Contractor, have to account for your sub-contractor’s VAT. Turbo Inventory has this feature built in.

Creating a Reverse Charge VAT Sales Invoice

Click Sales
Click Sales Invoices
Click New Sale
Tick Reverse Charge VAT
Continue your Sales Invoice

Creating a Reverse Charge VAT Hire Note

Click Hire Notes
Click New Hire Note
Tick Reverse Charge VAT

When printing the Sales Invoice it will then print the following message

VAT ON THIS SUPPLY TO BE ACCOUNTED FOR BY THE PRINCIPAL CONTRACTOR.

Important

You need to mark each Sales Invoice or Hire Note as Reverse Charge VAT there is no need to mark