Hi
The item itself cannot/should not be set up to always result in 20% or 0%.
Just use a VAT Product Posting Group which you would in your country, like "normal" and "reduced".
And then use VAT Business Posting Groups for cusotmers and vendors like EXPORT, EU, NATIONAL and assign to the cusotmers and vendors accordingly.
The VAT percentage for the transaction is the result of the combination of these both groups
You can have the item set up with VAT Prod Posting Group - NORMAL (or RSCL as you mentioned that code)
And you can have the EU vendor set up with VAT Bus Posting Group - EU
In the VAT Posting Setup for EU / NORMAL you can have 20% Purchase VAT (with the VAT Calculation Type = Reverse Charge VAT)
This would indeed trigger 20% Purchase VAT, but also 20% Reverse Charge VAT. these two VAT Amounts equal each other out
This should be good for the EU purchase, right?
If you would buy the same item from a EXPORT vendor you can EXPORT / NORMAL with 0% VAT (VAT Calculation Type = Normal VAT)
and then you sell the same item to the customer and you can have the DOMESTIC customer set up with VAT Bus Posting Group - NATIONAL
In the VAT Posting Setup for NATIONAL / RSCL you can have 20% Sales VAT
This should be good for the sales, right?
Consequently, if you then sell the item to an EU customer ... it would have 0% VAT (because the VAT calculation type = Reverse Charge VTA always results in 0% Sales VAT)
or ... if you would buy the item from a NATIONAL vendor ... it would have 20% Purchase VAT
It is all about the combination in the VAT Posting Setup.
If you need further assistance with this setup please reach out to your partner or log a service request with Microsoft.
Thanks
