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1. Create an Invoice Received for Imported Services (Purchasing > Invoices Received).
In document parameters, set taxation parameter as Import:
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B) By Payment documents in case of advance payment (Bank Payment, Cash Payment, Cheque Issued) :
1. Select Import taxation and apply import of Services checkbox:
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4.
2. Make the payment “Advance” at Payment Details tab:
3. Once the document is posted, check the Debit and Credit The entry should be as below:
To check the result, use VAT Return Recoverable VAT report or Output VAT report: (Taxes > Taxes Documents > VAT Returns):
Create new VAT Return and choose:
- the VAT period where this reverse entry falls or the current VAT period
- Entity
Report is filled automatically:
A)
B)
Reverse Charge is reflected in boxes 3 and 10. Click on Details to check entries in Recoverable VAT report or Output VAT report:
10 in VAT Return.
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