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Dynamics 365 Community / Forums / Finance | Project Operations, Human Resources, ... / UK reverse charge VAT ...
Finance | Project Operations, Human Resources, ...
Suggested answer

UK reverse charge VAT - Purchase order

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Posted on by Natascja 35

Hi,

We have set up reverse charge VAT as per documentation supplied. We have entered a Purchase order and the entries for the input and output VAT are calculated correctly.

However, we need to gross up our sales amount so that it reflects the amount reported in the VAT, i.e. we need to have an entry in box 6 of the tax return even though we haven't actually made a sale as per screenshot from HMRC reverse charge for services.

Has anyone done this in Dynamics? Do you create a sales account to add to the tax return and then another sales account not included in tax return to net out the amount posted? Have you set this up so that when the invoice is posted the additional accounts are automatically populated?  Was the sales accounts for the value of deemed supply created as a statistical account with a statistical offset? Can you included a statistical account in the tax return (MTD). Apologies for all the questions.

Any guidance would be appreciated.

Many thanks

Natascja

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  • Natascja Profile Picture
    Natascja 35 on at
    RE: UK reverse charge VAT - Purchase order

    Hi Nicola,

    We're almost there but not quite. Still have an issue with VAT on sales orders but hoping to have this fixed soon.

    Thanks

    Natascja

  • crawlenj Profile Picture
    crawlenj 130 on at
    RE: UK reverse charge VAT - Purchase order

    Hi Natascja,

    Did you have any luck setting up VAT for reverse charge correctly?

    Best wishes,

    Nicola

  • Natascja Profile Picture
    Natascja 35 on at
    RE: UK reverse charge VAT - Purchase order

    We're still waiting to have our set up completed so that box 6 is populated. We hopefully will have this completed in the next two weeks. Once we have it all set up I will let you know.

    I'm still hoping someone out there has done this already.

    Thanks

    Natascja

  • Mia07 Profile Picture
    Mia07 95 on at
    RE: UK reverse charge VAT - Purchase order

    Has this been fixed? I can not find where it says after brexit changes, box 6 needs to be empty. Can someone please let me know where i can find this confirmation? 

  • Natascja Profile Picture
    Natascja 35 on at
    RE: UK reverse charge VAT - Purchase order

    Hi Sheela,

    Thank you for your reply. Unfortunately we've been advised that we need to complete box 6. In our old system we were able to amend box 6 to record the theoretical sale, however we would like Dynamics to book this automatically. Also we've been told (maybe incorrectly) that the values on MTD cannot be manually amended.

    Thanks

    Natascja

  • Suggested answer
    Sheela Ningappa Profile Picture
    Sheela Ningappa on at
    RE: UK reverse charge VAT - Purchase order

    Hi,

    Please find the below link:

    docs.microsoft.com/.../gbr-set-up-reverse-charge-vat

    After setting the reverse charge, Box 6 should be empty due to brexit changes.

    Both reverse charge code should be setup with Country/region Third Country/region, then the negative reverse charge vat on sales tax group should have reverse charge marked.

    Thanks,

    Sheela

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