Enabling the VAT reverse indicator

The customer will account for the vendor's output VAT, but will reclaim the exact same amount as input VAT.

Before you can use the VAT Reverse functionality, you must perform this setup to enable its use.

  1. Create an Entity Tax Code record for VAT revenue.
  2. In the Accrued or Invoiced field, select Accrued.
  3. Select a value in the Accounts Payable Tax Accrual Code field.
  4. On the VAT Fields tab, select the VAT Reverse Indicator field.