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Dynamics 365 Community / Forums / Finance | Project Operations, Human Resources, ... / VAT Setup for Domestic...
Finance | Project Operations, Human Resources, ...
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VAT Setup for Domestic purchases at a rate of 25 percent Reverse charge

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Posted on by Kristina K 270
Hello!
Here in Sweden we have a special VAT for building services for which the buyer are not supposed to be paying any tax on the amount, but it has to be reported to tax authorities with the purchase amount and tax calculated but zero amount to be paying to tax authorities. 
When doing the posting I currently get an extra calculation VAT line presented but the report itself to tax authorities is showing the correct amounts posted. 

I attach here some basics of this and would like to see if someone can help with what I am missing in here. It is the line marked in yellow that is redundant
 
Journal numberVoucherDateLedger accountAccount nameCurrencyAmount in transaction currencyAmountPosting typePosting layerVendor accountVendor name
1100-0004041100-000167#######24400----Accounts payablesSEK-15 000,00-15 000,00Vendor balanceCurrent1100-000021Test Supplier
1100-0004041100-000167#######26470----Value Added Taxes- reverse tax liability goods and servicesSEK3 000,003 000,00Sales TaxCurrent1100-000021Test Supplier
1100-0004041100-000167#######26140----Output VAT Goods EUSEK-3 000,00-3 000,00Sales TaxCurrent1100-000021Test Supplier
1100-0004041100-000167#######40110----Purchase of goodsSEK12 000,0012 000,00Ledger journalCurrent1100-000021Test Supplier
1100-0004041100-000167#######99928----Test AccountSEK3 000,003 000,00Sales TaxCurrent1100-000021Test Supplier
 
 
 
 
 
 
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  • Suggested answer
    André Arnaud de Calavon Profile Picture
    André Arnaud de Cal... 300,188 Super User 2025 Season 2 on at
    VAT Setup for Domestic purchases at a rate of 25 percent Reverse charge
    Hi Kristina,
     
    Can you confirm if the last screenshot is the Sales Item Tax Group with the setup which Sales tax codes are linked to it? Do you have the two sales tax codes also linked on the Sales tax code?
    You would need only the first Sales tax code, I think. The voucher transactions now show a Sales Tax balance of 3000 and the vendor balance is also 3000 too high. With only the first Sales tax code and having the Reverse charge and Use tax enabled, it would post only the first four lines where the first line would have -12000 as the amount. 
  • Suggested answer
    Kristina K Profile Picture
    Kristina K 270 on at
    VAT Setup for Domestic purchases at a rate of 25 percent Reverse charge
    I have solved this part more by using the setup of Use Tax to get the postings OK

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