Reverse charge (VAT)

Reverse charge means that the buyer settles the VAT instead of the seller. The invoice is issued without VAT, and the buyer calculates and pays the VAT. Normally, the seller settles the VAT, but with reverse charge, the buyer does it themselves after receiving an invoice without VAT.

How does Acubiz handle reverse charge

Acubiz does not have the option of performing the VAT calculation itself on a document where reverse charge applies. This is because the VAT calculation in such cases is handled differently than for regular documents. However, Acubiz can, using a special VAT code dedicated to reverse charge, inform the accounting system (ERP) that reverse charge must be applied to the individual entry.

In this way, the system ensures that VAT is processed correctly in the accounts, even though Acubiz does not perform the calculation itself. 

See also:

• Expenses: Setting Up VAT Codes
• Calculation of VAT in the Cost File