Help/Guide:


When creating a Purchase invoice, you will now be able to apply the Reverse Charge (20%) VAT rate abbreviated as RC-S (20) as well as Reduced and Zero Rate.


The VAT is calculated at the UK standard rate on an original purchase and cost is included in the output VAT (sales VAT) (Box 1 in VAT summary) as if it is sold to UK customers. Additionally, the original purchase cost will be included in net sales.


If the purchases are Reduced rated, the input VAT is calculated based on the reduced rate, and is then included in box 1 and the net sales included in box 6.


Note – this 9-box logic is also applicable under MTD and not just standard VAT