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VAT reverse charge

androohandrooh Member Posts: 2

Hi :)

Can you please give me advice how to book VAT Reverse charge when for example DK company import goods/services from Supplier that is from another EU country or outside EU country?

My idea example:
goods/service 1pc x 10eur = 10eur
VAT reverse charged (manually entered): 2.5 eur
VAT reverse charged (manually entered): -2.5 eur (here is the issue that the program calculate it as +2.5 eur)
total (before VAT): 10 eur
total VAT: 0 eur (bu the program calculate 5 eur)
total for payment to the supplier: 10eur (but the program calculate 15 eur)

My idea is to record in the purchase all supplied items without VAT (as per the Supplier's invoice, which is without VAT), then manually to add new line +VAT (enter manually the amount correspond to 25%) and then and new line -VAT (enter manually the same amount correspond to 25%, but with minus). So the VAT is just registered for reporting purposes (the effect is null).

The issue above is that when I enter manually negative VAT, it is changed and calculated as positive amount, and then total VAT is double (instead null).

Can you please make it that when I manually enter negative VAT amount it is recorded as negative (and then deducted in the total VAT sum)?

Or there is another way how to register the VAT reverse charge?

Thank you.

in Accounting Technical Support

Comments

  • AlexiaAlexia Member Posts: 3,314 ✭✭✭✭

    Hi @androoh.

    Unfortunately, VAT reverse charges aren't supported in Wave at this time. There's no way to input a negative tax rate in Wave for now, but I'll make sure to pass along your feedback to the team.

    I think your best option here would be to talk with an accountant. They would be able to help much more than we can in matters of taxes.

  • androohandrooh Member Posts: 2

    Hi Alexia,

    Thank you for your comment/feedback to the team.

    Yes, it will be very good (as the first step) to make Wave to accept input of negative tax amount or rate - and should be easy to do it :)

    I found some detailed explanations, that might be useful if you decide to make Wave to support VAT reverse charge:
    https://docs.microsoft.com/en-us/dynamics365/unified-operations/financials/localizations/emea-reverse-charge

    Thank you.

  • AlexiaAlexia Member Posts: 3,314 ✭✭✭✭

    Thank you! I can't speak to how complex it would be to add a feature like this one (I'm no programmer myself), and I can't make any promises, but I'll be sure to pass this along.

  • WigsterWigster Member Posts: 1

    Does Wave still not support the reversing of VAT?
    Many thanks

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