Invoice - Show Domestic Reverse Charge VAT on Invoices
Show the total amount of Domestic Reverse Charge VAT on an invoice, to make it clear to the customer what is due by them.
It is not necessary to show the VAT amount on each line, when it is the same for the whole invoice.
While Xero may be compliant with HMRC, it is not right for businesses who are being repeatedly asked for this information to be shown on invoices. It would be a simple fix for Xero as the functionality is already in place.
This is on a discussion thread with plenty of users requesting the same thing.
Carla Lee
shared this idea
Thanks for sharing this idea and for explaining the impact it has on customers using Domestic Reverse Charge VAT.
We can see why having the reverse charge VAT amount shown more clearly on invoices would be helpful, especially where customers expect to see this information called out directly rather than needing to calculate it themselves.
We’re moving this idea to Gaining Support so we can continue to track interest and better understand how many customers this affects.
For now, Xero supports Domestic Reverse Charge invoicing by showing the relevant tax treatment and required disclaimer, but we understand that doesn’t fully meet the need raised here.
If this would help your workflow, please add your vote and share details in the comments about when you need to show the reverse charge VAT amount on the invoice. That context helps our product team better assess the problem.
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Carla Lee
commented
The DRC amount always needs to be shown on invoices, when it applies. Xero seesm to be the only accounting software that doesn't do this
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Jane Kavanagh
commented
When putting through a sales invoice with DRC it would be helpful to have the option to include the amount of VAT that is being reverse charged onto the invoice as some customers have requested this.
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Richard Bushell
commented
Please fix this!
SAGE handles this brilliantly, it shows 2 subtotal lines as follows:-
Total VAT 822.59
VAT Reverse Charge -822.59Absolutely perfect! Please copy this, simple fix!
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Hayden Haney
commented
On Xero accounts UK, when domestic reverse charge sales are made, can you please automatically show the amount of VAT subject to reverse charge on the sales invoice
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Peter Russell-Wilks
commented
I have asked Xero about this a few times. It is so annoying having to go thorough the invoice manually and check what VAT is due, especially when there are different VAT rates within the same invoice. I.E. parking is rated at 0% but parking text messages and goods sold are 20%.