Page History

...

Solution: Use system settings as shown.

A) By invoice received:

1. Create an Invoice Received for Imported Services (Purchasing > Invoices Received).
   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 for filled expenses:

...

3. Once the document is posted, check the Debit and Credit transactions. The entry should be as below:
4.

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:

Image Added

2. Make the payment “Advance” at Payment Details tab:

Image Added

3. Once the document is posted, check the Debit and Credit The entry should be as below:

Image Added

To check the result, use VAT Return Recoverable VAT report or Output VAT report: (Taxes > Taxes Documents > VAT Returns):Image Removed

Create new VAT Return and choose:

• the VAT period where this reverse entry falls or the current VAT period
• Entity

Report is filled automatically:
Image Removed

Image Added

A)

Image Added

B)

Image Added

Reverse Charge is reflected in boxes 3 and 10. Click on Details to check entries in Recoverable VAT report or Output VAT report:
Image Removed 10 in VAT Return.

Thank you for being a FirstBIT customer!