New Reverse VAT changes

Datafile Software Limited, has released a reverse charge VAT upgrade. This covers the new reverse VAT legislation which was introduced on June 1st 2007. VAT registered businesses that buy or sell computer chips or mobile phones will have to apply the new rules to business transactions over £5,000.

Under the reverse charge accounting mechanism, it is the responsibility of the customer, rather than the supplier, to account to HMRC for VAT on supplies of the specified goods.

The reverse charge does not apply to supplies with a VAT-exclusive value below £5,000. This figure is calculated on an invoice basis, ie the reverse charge applies if the total value of all the specified goods shown on an invoice is £5,000 or more. In that event, the reverse charge applies to the total value of the specified goods on that invoice.

Changes in the programs include:

• New definable reverse vat code e.g. R
• Definable limit, currently £5,000
• Sales ledger validation and calculation of reverse vat
• Purchase ledger validation and calculation of reverse vat
• Invoicer support for reverse vat calculations and printing on documents
• Sales and Purchase order processing support for reverse vat calculations and printing on documents
• Inclusion of reverse vat on the Vat Form 100

The programs also validate against invalid use of the reverse vat code when it is not applicable.

For more information on Datafile Software, its range of solutions or to enquire about the reverse charge VAT upgrade, please telephone 0845 643 2766 or send an email to office@datafile.co.uk