Hello,
When we want to post purchase invoice with Reverse charge VAT type, system posts in GL two entries related to VAT setup,on sales vat account and reverse vat account, and its ok. But, why this dont working on sales side?
Comments
@Nikola M
It is in the nature of things.
see also here: https://vatdesk.eu/en/reverse-charge-mechanism/
In the area of sales, only the assessment basis, i.e. the net amount, is reported to the tax authorities for reverse charge cases. This is why we in BC don't calculate VAT for this case and don't post any G/L entry for this.
In purchasing, we have to report both the purchase VAT and the reverse charge VAT to the authorities. Therefore, we create a VAT entry and evaluate it twice in the VAT statement, once positively and once negatively. And we post the VAT amount in G/L as well:
Category: Financial Management
Business Central Team (administrator)
Thank you for this suggestion! Currently this is not on our roadmap. We are tracking this idea and if it gathers more votes and comments we will consider it in the future. Best regards, Business Central Team