What is VAT reverse charging and how does it work? That's the theme of episode 44 of I Hate Numbers. With the UK leaving the EU on 1st January 2021 your business needs to know.Brexit also brings a number of other changes to VAT, we've covered this in previous podcasts, and a more detailed blog.In this episode, I'm going to look at VAT reverse charging andAn overview of what it isHow it applies to GoodsThe treatment of ServicesWhen your business is sellingWhat happens when you are the buyer?Compliance and following the lawWhat is VAT reverse charging We know it's here to stay, and if anything, it is becoming more widely used. Governments like it because it reduces the level of VAT fraud and evasion. Where your business applies reverse charging, the responsibility shifts to your customer.It’s like making a reverse charge (collect) phone call. The bill payer picks up the tab.Your business still has a part to play, verification, evidence and compliance don’t vanish. With VAT reverse charging it is your customer who is responsible for paying VAT in the country they belong and will be easier to chase than an overseas supplier.VAT reverse charging only applies to services that would be zero-rated, reduced rated or standard rated. Where your business is a buyer, then you can be within VAT reverse charging, even if you are not VAT registered.Listen to find out more about What is VAT reverse charging and how does it work?What software and technology solutions exist for VAT compliance?There are many software and technology-based solutions being developed. One example is Quaderno, which can handle those responsibilities behind the scenes. Their service is full tax compliance and deals with the reverse-charge mechanism.Where your business sells e-books, online training, digital products then you also need to be aware of not breaking EU VAT law from 1st January 2021. This applies whether you only sell one item, and you are not VAT registered. Check out our Live Recorded Webinar to find out moreNow, make yourself comfortable, sit back and listen. Most importantly, subscribe so you do not miss an episode.In This EpisodeUnderstanding what VAT Reverse Charging isAppreciating how it applies to goods and servicesWhat happens when your business is the buyer and sellerThe role of software and system solutionsDeveloping your own Numbers confidence and decisionsTake more control of your numbers to help make you money, survive and thriveLinkshttps://podcasts.apple.com/podcast/proactiveresolutionss-podcast/id1500471288https://play.google.com/music/m/I3pvpztpjvjw6yrw2kctmtyckam?t=I_Hate_Numbers

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“What did the council decide on item 42?” — answered with the speaker and the moment.

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