Finance | Project Operations, Human Resources, ...

Sales Tax Direction

(0) Share

Report

Posted on by Hussain Ali

Hi,

I have configured VAT reverse charge codes and added to VAT Group, now when I process purchase order with this VAT group it creates two VAT transactions one with "VAT Payable Direction" and one with "VAT Receivable Direction", however when I process Sales Order it creates two VAT transactions which is ok, but both of them have VAT direction as "VAT Payable"

I have the same question (0)

All responses (3)

Answers (0)

Ramit Paul 22,803 Most Valuable Professional on at

Like (0)

Report
Copy link

Link copied!

HI,

Are you using tax engine for this? or this is standard sales tax setup?

Was this reply helpful? Yes No
Hussain Ali 64 on at

Like (0)

Report
Copy link

Link copied!

Hi Ramit,

I am using standard sales tax setup.

Was this reply helpful? Yes No
Suggested answer

Michal Krejza Microsoft Employee on at

Like (0)

Report
Copy link

Link copied!

Hi,

have you checked this: Reverse charge on a sales invoice

For sales under the Reverse Charge schema, the seller doesn't charge VAT. Instead, the invoice indicates both the items that are subject to the reverse charge VAT and the total amount of the reverse charge VAT.

When a sales invoice that has the reverse charge is posted, the sales tax transactions have the Sales tax payable tax direction and zero sales tax, and the Reverse charge and Exempt check boxes are selected.

Was this reply helpful? Yes No