Hi everybody,
I would like to know how I could set up the VAT in Business central, in which the buyer self-charges VAT. For tax purposes, the customer is both the buyer (deducts) and the seller (charges). Reverse charge is also one of the cases in which VAT is not added to the invoice.
As a general rule, companies charge VAT on sales and deduct VAT on purchases. The reverse charge mechanism is a deviation from this rule, whereby the supplier does not charge VAT on their invoice, while the customer declares and deducts the corresponding VAT simultaneously on their own VAT return.
In the VAT registration group settings, under the VAT calculation type option, there is an option for reverse charge VAT, and I am unsure whether that should be the setting. I need help with this.
King Regards,
