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Hi,
I wonder what the difference is between using the check box for "Use Tax" and "Reverse charge" for the sales tax code when I set up sales tax groups?
I have always set the "use tax" check box to yes if I want the Sales tax transaction to reverse when I post a transaction where I will need the sales tax for reporting purposes but I will not pay it (For example when you buy a product from an EU country to Sweden). I have read about it but it seems like the result becomes the same, no matter which of the two check boxes I choose to fill out. So what is the difference?
From the accounting point of view, there is no difference
however from the sales tax reporting there is difference.
use tax offset the same tax by sales tax receivable and sales tax payable
However reverse charge require two tax code
Check this doc from MS.
docs.microsoft.com/.../emea-reverse-charge
Hi Emma,
Did the suggestion help you to understand the concept?
If so, you may mark this answer as verified to motivate us.
If not, kindly share what is your requirement on this?
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