Updated VAT handling for Brexit

#1

I am trying to update my code’s VAT handling in the light of Brexit:

It seems that FreeAgent is automatically converting an EC status of EC Services to Reverse Charge for transaction explanations dated on or after 01.01.2021. If so, can I leave my code alone or will this conversion ever be deprecated?

Also, are any other automatic conversions happening in this area?

Many thanks!

Yours,
Andrew Stewart

#2

Hi Andrew,

Thanks for bearing with me while I checked the details of the new rules with the team responsible for this part of the app. I can confirm that there are no plans to deprecate the EC Services > Reverse Charge conversion as we’ll always want to handle pre-2021 EC statuses. There are no other automatic conversions in this area, though in terms of other changes you’ll notice that the API will now return an error if EC Goods is set for a bank transaction explanation dated after 1/1/2021 and the business is located in Great Britain.

Best wishes,

Ewa

#3

Hi Ewa,

Thanks very much for checking into this. That information is most helpful.

On the bank transaction explanation docs, presumably "Reverse Charge" is now a valid ec_status value?

Best wishes,
Andrew

#4

Hi Andrew,

For now, please continue using EC Services as the ec_status. Our engineers are planning on adding a note to that effect to the documentation, and if this changes in the long term (as I’d imagine it likely might!), we’ll make sure it’s announced on the forum.

Best wishes,

Ewa