Alan Mugleston

I've studied the link that youn provided for several hours, but remain very confused about exactly what is required. Do I need to show the VAT that my subcontractor would normally have charged as an Input VAT charge (to reclaim it back even though my sub-contractor didn't actually charge it due to Reverse Charge), and then show an identical amount in my Output VAT returns so that the net effect is zero? I will later charge my end user Output VAT in the normal way.

After attending today's Webinar on Reverse Charge VAT, I remain very confused about how to record Reverse Charge VAT in my Excel spreadsheet bookkeeping system. I an a VAT registered Sole Trader, also registered under CIS as I occasionally use sub-contract labour. I've just received a Reverse Charge invoice for £300 from a company that did some specialist work for me as a one-off. Do I enter this as a £300 zero-VAT entry on my 'Supplies inwards' sheet, then create a second line that shows £0 for goods, £60 VAT, £60 total (as Input VAT) and then create an 'invoice' on my 'Customer Invoices' sheet for the Reverse Charge £60 amount £0 goods / services, £60 VAT, £60 total (as Output VAT) so that the VAT Inwards and VAT Out cancel each other out? I will then charge my end-user customer VAT on my invoice to them in the normal way.