Reverse Charge EU / Rest of World Service Purchases

Article ID: 2027029                      Last updated:  21 January 2026

 

A VAT Code Type called ‘Reverse Charge EU/RoW Service Purchase’ is available for businesses required to report reverse charge purchases of services from the EU and rest of the world.

• Section 5 of VAT Notice 741a explains how to account for UK VAT if you’re a UK recipient of services from a non-UK supplier.

To create a ‘Reverse Charge EU/RoW Service Purchase’ VAT Code

•  In AccountEdge, at the top of your screen select Lists> VAT Codes.

•  The VAT Code List will appear.  Click New.

•  Enter a VAT Code reference, for example 'REV-EU/ROW' or similar.

•  Enter a Description such as 'Reverse Charge EU/RoW Service Purchase' or similar.

•  Set the VAT Type to 'Reverse Charge EU/RoW Service Purchase'.

•  Set the Reported Rate on VAT Return to the current standard rate.

•  Set the Linked Account for VAT Collected and VAT Paid to your VAT Due liability account (2-xxxx).

•  Linked Card for VAT Authority is not a mandatory field.

Example:

• Click the VAT Return Info button.

• Check that the VAT Code is available for Purchases (Inputs), and affects boxes 1, 4, 6, and 7.

 

Recording Purchases

When recording transactions requiring Reverse Charge EU/RoW service purchase treatment, simply use your new VAT Code on the relevant lines of the transaction.

 

 

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