Reverse charge VAT shifts the responsibility for accounting for VAT from the supplier to the customer. The supplier issues an invoice without charging VAT, and the customer records the VAT themselves. That sounds straightforward, but the surprising point is that reverse charge VAT isn't only a construction rule. HMRC also applies it to qualifying cross-border… Continue reading What Is Reverse Charge VAT? a Complete Guide
Tag: vat accounting
VAT Flat Rate Scheme: A Complete Guide
“Join the VAT Flat Rate Scheme because it saves money” is advice worth challenging. The scheme can reduce VAT administration, but it doesn't automatically reduce your VAT bill. For many consultants, contractors and other service businesses, the Limited Cost Trader rule can replace an attractive sector rate with 16.5%, changing the calculation completely. HMRC's guidance… Continue reading VAT Flat Rate Scheme: A Complete Guide