How to Apply Reverse Charge for services?
Problem: How to Apply Reverse Charge for services?
Solution:
In order Apply Reverse Charge for services, you need to do the following:
Go to Purchasing > Invoices Received
In the purchase document, set taxation- Import.
On the Expenses tab, check the box Apply Reverse Charge for services and fill rest of the data as required.
Once the document is posted, check the DR and CR transaction, the entry should be as below
To check result, you can use the report VAT returns from taxes documents-
Create new VAT return, choose the period where this reverse entry falls or the current VAT period, Entity and choose fill, the report should be filled automatically as below-
You can find the effect of this reverse entry under boxes no 3 and 10. If needed to check which entries are added, you can click on details, it will further direct you to the recoverable/Output report.