Hi everyone, 

We get supplier invoices from within the EU. We are supposed to put these on Sage using a Reverse charge VAT code. As they are coming from the EU they are also supposed to appear in the value of the invoices in box E2 in the VAT Return. What VAT code do I need to use, or how do I create a VAT code that does this?

I can see code T18 includes an amount for VAT in boxes T1 and T2 but this is only if you have included the VAT when posting the invoice (my understanding) and Sage does not apply the reverse charge on these invoices. If you were to include a notional VAT amount from an EU Supplier you could end up paying them too much e.g. the invoice is €1,000. You are supposed to do a reverse charge on this. By including the invoice with VAT of 23% in T18, you will be paying the Supplier €1,230 and T1 and T2 will have €230.

I tried to create a Reverse Charge VAT Code, I highlighted the Reverse Charge on the bottom left, being Domestic Reverse Charge, but when you do this, the EC tick box vanishes. As a result, these invoices do not appear in the total of the invoices under box E2 in the VAT Return.