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 : 鈥淰AT ON THIS SUPPLY TO BE ACCOUNTED FOR BY THE PRINCIPAL CONTRACTOR鈥�.
For scrap metal sales the statement is 鈥淰AT on this supply to be accounted for by the recipient鈥�.
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 鈥業nvoice Template鈥�; 聽when you select 鈥楾ype 2 Invoice Layout鈥� in Sales Invoices 鈥業nvoice Template 1鈥� 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聽鈥楾ype 2 Invoice Layout鈥櫬爄s checked.
