Tag: VAT

7Mar '11

VAT-Man

I *am* the VAT-man! For a flat-rate trader who has obtained services from an EC state which did not have VAT added at point of sale, the reverse charge is dealt with outside the flat-rate scheme and reclaimed with nothing additional to pay: Box 1 contains ((Turnover inc VAT x Flat-Rate Percentage) + notional UK VAT), Box 4 contains the notional UK VAT, Box 6 is (Turnover Inc VAT + actual amount paid for EC services) and Box 7 is the actual amount paid for EC services). Three phone calls to the helpline later, I actually understand all this… just!