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Dynamics 365 Community / Forums / Small and medium business | Business Central, N... / VAT POSTING SETUP in U...
Small and medium business | Business Central, N...
Suggested Answer

VAT POSTING SETUP in UK Localization

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Posted on by Vikas_646 112

Hi All,

Recently I configured a Production Company in UK Localization with standard setup data available in BC.

I have a doubt about the VAT POSTING SETUP.

For VAT Business Posting groups Export and EU, there is VAT with Reverse Charge is applicable. As per my knowledge it should be NIL or Zero.

Can anyone confirm whether this is correct or not?

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I have the same question (0)
  • Suggested answer
    NAV_with_Narang Profile Picture
    NAV_with_Narang 2,384 Moderator on at

    Hi Vikas - I am not sure if I entirely understand your question. This setup is to be filled by each company's accountant who files VAT to the HMRC. The VAT Posting Setup calculates VAT % based on the combination of VAT Bus Posting Group (VATBPG) & VAT Prod Posting Group (VATPPG). If you see you have 4 lines with VATBPG as EU in which the line with VATPPG = ZERO has Vat % value filled in as 0. That implies when this combination of VATBPG & VATPPG appears on an Invoice, the VAT calculated will be zero, in other cases it will be calculated as described in the %

    If your organization does not need EU VAT % of any other sort apart from 0, you can delete this setup or block it so no one can use it

  • Vikas_646 Profile Picture
    Vikas_646 112 on at

    Hi Rahul.. thanks for your reply.

    I am talking about default VAT configuration available in standard setup data. This needs to be verified and confirmed by concern expert.

  • Gavin Profile Picture
    Gavin 2,510 on at

    Hi,

    To add to this, I have posted about how I have setup reverse charge VAT in this thread.

    community.dynamics.com/.../reverse-charge-vat-on-purchases---vat-return-error

    Maybe this will be of help.

    Thanks

    Gavin

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