VAT reverse charge mechanism - on generic digital services?

[Square_Pencil]

Hello,
We are a small tech start up registered in the UK (also VAT registered).

Do I need to claim/report VAT on digital services from outside the UK (google workspace, Wix etc)? The invoice says '* Invoice subject to the reverse charge mechanism - VAT to be accounted for by the recipient'. And if so does that mean that I have to pay 20% as VAT or I can claim it back from HMRC (so I get the 20% back?). In the past accountants have told e to just ignore these, and not bother including them in the VAT returns.

Thank you,

 

[Daybooks]

They were wrong to tell you that. Whilst “ignoring it” may have no effect on the ultimate VAT liability in many cases - this is not always the case. It can also affect the requirement to register for VAT.

An excellent article was given here by an excellent author on VAT matters:

Reverse-charge VAT rule is flipping confusing

Reverse charge is a catch-all phrase that acts as either an anti-avoidance measure or a simplification. Its purpose is to flip normal VAT rules on their

www.accountingweb.co.uk

Item 2 should be of interest to you.