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Vendor Invoice VAT Input and VAT Output

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Posted on by Aruboso

I am trying to replicate the following scenario.

Create a vendor invoice in D365 FinOps which contain a line with a procurement category and VAT input and VAT output. Therefore, the total amount of the invoice will have 2 entries in VAT (Input and Output) leaving the invoice netting to 0,

The reason why it is required is due to reflect the transaction to the tax authority.

Is this something possible to do in D365?

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BillurSamdancioglu 19,703 Most Valuable Professional on at

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Hi,

There are various ways to do so. It depends on how you want to report.

Is it possible to define one positive and one negative value VAT code in the vat groups?

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Prem Kumar Bachu 3,418 on at

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Hi,

You can create tax code with 0%. Create tax groups as "tax free or tax exempt" and assign 0% tax code to this group. In transaction it will show tax line but tax amount will be 0.

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Aruboso 20 on at

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Hi,

I need to report to the tax authorities the VAT input and the VAT output to show the transaction.

if I create a positive and a negative VAT code. I am only allow to select the combination between Sales tax group and Item sales tax group in the Vendor invoice. Therefore, I will not be able to select 2 VAT codes for one transactions.

The idea is to reflect on the voucher

Credit - Account payable (Total amount)

Debit - VAT input (Positive VAT amount)

Credit - VAT Output (Negative VAT amount)

Debit - Cost account (Total amount minus the VAT input and VAT output which makes same value as the account payable)

Will this work with Reverse Charges?

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Prem Kumar Bachu 3,418 on at

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Yes reverse charge works for you if this feature is available for your country/region.

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saurabh bharti 15,039 Moderator on at

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Is it reverse charge scenario?

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