Setting Up A Sales Invoice Layout For Reverse Charge VAT.
For transactions subject to Reverse Charge VAT no VAT is charged, the Sales Invoice shows no VAT analysis details; it shows the VAT Registered Numbers of both parties and the clear statement of who will account for the VAT.
For a sub-contractor the statements is : “VAT ON THIS SUPPLY TO BE ACCOUNTED FOR BY THE PRINCIPAL CONTRACTOR”.
For scrap metal sales the statement is “VAT on this supply to be accounted for by the recipient”.
To facilitate this alternative Sales Invoice we have added the option to specify two Sales Invoice Layouts in Form Design.
The default invoice template is ‘Invoice Template’; when you select ‘Type 2 Invoice Layout’ in Sales Invoices ‘Invoice Template 1′ is used.
Entering A Reverse Charge VAT Invoice.
When entering a sales transaction subject to Reverse Charge VAT, the net amount is analysed at the zero rate and the option ‘Type 2 Invoice Layout’ is checked.