Reverse Charge Sales Report - Overview

This document explains the implementation and usage guidelines for the “Reverse Charge Sales Listing Report for UK”, using an end-to-end flow example. Details provided include pre-requisite setup, important transaction entry aspects, and report output details.

The report provides a record of UK sales for the high value electronic goods subject to the reverse tax charge reported to HMRC (HM Revenue & Customs). In particular, the specified goods to which the reverse charge applies are :

• Mobile telephones
• Integrated circuit devices, such as microprocessors and central processing units, in a state prior to integration into end user products
• Emissions allowances, emissions reduction units and emissions reduction certificates

The reverse charge only applies to the sale and purchase of specified goods and services:

• between UK tax registered organizations.
• for goods, where the VAT exclusive value of the supply is above the £5,000.00 threshold.
• where the goods and services are bought and sold for business use.

The Reverse Charge Sales Listing Report for UK considers only the sales side. Therefore the customer has the responsibility, rather than the supplier, to account to HM Revenue and Customs (HMRC) for VAT on supplies of the specified goods or services.

Further details can be found on the HMRC web site. See the Appendix.