Hi guys,
I am trying to set up a non-deductible reverse charge tax code.
So for these particular invoices, we need to code it to a Reverse Charge tax code but cannot claim the input credit. So the net amount of the invoice should post to the income statement as normal, the sales side of the reverse charge should post to the VAT Payable account but we can't claim the input credit, so that amount also needs to hit the income statement.
I have set up 2 tax codes - a positive and negative and I have set the negative to be 100% non-deductible in the Values section.
I have added these codes to the VAT Group and created a new Item VAT Group with these two codes.
I have tested it on an invoice but it is posting to both the VAT Payable (correct!) and VAT Receivable (incorrect!) accounts.
Any ideas? Thank you!
