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Problem:
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How to Apply Reverse Charge
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to Imported Services?
Solution:
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In order Apply Reverse Charge for services, you need to do the following:
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Use system settings as shown.
1. Create an Invoice Received for Imported Services (Purchasing > Invoices Received
In the purchase document, set taxation- Import.).
In document parameters set taxation parameter as Import:
See also 4.2.3.1. Invoices Received (Receipt From Supplier)
2. On the Expenses tab, check the box Apply Reverse Charge for services and fill rest of the data as required.for Services for filled expenses:
3. Once the document is posted, check the DR and CR transaction, the Debit and Credit transactions. The entry should be as below:
4. To check the result, you can use the report VAT returns from taxes documents-use VAT Return (Taxes > Taxes Documents > VAT Returns):
Create new VAT return, Return and choose:
- the VAT period where this reverse entry falls or the current VAT period
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- Entity
Report is filled automatically:
Reverse Charge is reflected in boxes 3 and 10. If needed Click on Details to check which entries are added, you can click on details, it will further direct you to the recoverable/Output report.
entries in Recoverable VAT report or Output VAT report:
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