Invoicing and Domestic reverse charge for telecommunications services
If you are a reseller or channel partner, you will notice that your monthly invoice does not include a VAT amount associated with Call Charges. This is because of the HMRC legislation introduced in 2015.
Monthly invoices from Packnet to resellers and channel partners will not include VAT associated with call charges but will show the total amount of VAT related to reverse charges.
This is because Call charges between Packnet and resellers or channels are seen as wholesale minutes, and the legislation covers this scenario.
The monthly invoice will clearly show the following statement in this case.
The Reverse Charge VAT amount applies to call charges and must be paid by you to HMRC directly. Reverse charge: VAT Act 1994 Section 55A applies.
In addition, the amount of VAT that would be associated with the Call Charge element is shown on the invoice under the totals section.
The reverse charge scenario is incorporated into the Metis billing platform in the following scenarios.
| Invoice From | Invoice to | Associated Service | Invoice Type |
|---|---|---|---|
| Packnet | Reseller | Call Charges | Monthly |
| Packnet | Channel Partner | Call Charges | Monthly |
| Reseller | Channel Partner | Call Charges | Monthly |
Credit Notes
Any credit notes issued by Packnet to resellers or channel partners will not include a VAT element.