Display the Table of Contents
: : Reversing charge procedure for VAT
The customer who has to pay the VAT charge procedure must tell on the VAT declaration line the total amount, value added tax excluded, of the operation. The tax paid is deductible under the conditions of ordinary law.
The invoice related to the operations impacted by the reverse charge procedure mechanisms does not have to mention the required VAT. However, the fact that the VAT must be paid by the customer, as well as the title "Charge procedure", must be displayed.
Requirements
- In the Supplier record sheet, under the Finances tab, check the EU radio button.
- In the Customer record sheet, under the Finances tab, check the EU radio button. You will then have to enter the customer's VAT number.
Then you must:
- configure the Charge procedure for VAT edition template from Tools > Setup > Printing setup > Accounting.
- configure the VAT account to generate the charge procedure (by default 4452) from Tools > Setup > General setup > Financial accounting > VAT management > VAT declaration assistant under the Book-keeping accounts section.
- generate the charge procedure: at each validation of an invoice whose supplier is marked as EU and Services, an entry is automatically generated.
To reverse the charge procedure for VAT:
- Go to Accounting > Periodic works > Reverse charge procedure for VAT.
- You get the list of invoices from EU suppliers with the option set to Services in the predefined period.
- Check the Start printing box to get the result in paper format.
Display the Table of Contents