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Reverse VAT UK

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Posted on by 15

Wonder if anyone can help.

I have setup Reverse Vat we are a UK based firm.  We have a customer who sells Mobile phones and Chips so the 5000 pounds theshold applies.

The Inventory Item has be set to Reverse Vat Applies.  The VAT code is setup with a 5000 threshold.  In Sales & Receivables I have noted the Reverse Charge Posting Group.

Yet when doing a Sales Invoice VAT is still being calculated for all values.

Where am I going wrong!!

  • Enhanced Tech Profile Picture
    Enhanced Tech 15 on at
    RE: Reverse VAT UK

    Just to Clarify the above.  Also with further investigation.  The Item code is set to use  Reverse Vat  and the Reverse Vat Posting group is set on the item.  The VAT Statement is updating correctly.

    The system is not  taking into account that on any Purchases for Mirco Chips or Mobile Phones if the Net amount of the Purchase Invoice is over 5000 it should be using the Reverse charge rules if under then it should charge VAT as normal.

    Business Central is not looking to the threshold and recognising this,  It is leaving the VAT amount Blank even if the purchase is over 5000.

  • Ramit Paul Profile Picture
    Ramit Paul 22,297 Most Valuable Professional on at
    RE: Reverse VAT UK

    Hi,

    What do you mean by "VAT is still being calculated for all values."

    Can you give an example of accounting entry, how you want to setup.

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