Reverse Charge

Dear Community

The domestic reverse charge (referred to as the reverse charge) is a major change to the way VAT is collected (UK) .

It comes into effect on 1 October 2019 that customer receiving the service will have to pay the VAT due to HMRC(Tax Authorities) instead of paying the supplier.

My idea is to create a new code area using the P4008 – Work with Tax Rate/Areas to assign to the Suppliers .

The setup would include

1- Add 2 tax rates to the new tax rate/area code : one is positive the other negative.

2- Assign GL offset codes for the 2 tax rates and set up the relevant financial AAI’s : one entry is for the input VAT, the other is for