VAT reverse charge

VAT reverse charge is an anti-fraud measure which applies to the sale and purchase of specific goods and services. These are typically high value, portable, electronics such as mobile phones. The reverse charge procedure holds the purchaser liable to account for the VAT on the sale.

VAT is not charged by the vendor. The invoice must show the value of VAT due under the reverse charge rules. It must state that the reverse charge applies, and that the trading account customer is required to account for the VAT.

Brazil specifics

Reverse charge measures are present on imports of goods. The importer self-assesses IPI, PIS or COFINS, and ICMS then takes the same amount as credit to be offset with future outputs of the products.

How Infor meets the requirement

See the Tax User Guide and the Payables User Guide for VAT reverse charge information.

You must enable the VAT reverse process. Use these procedures to enable and process VAT reverse charges:

See Enabling the VAT/GST reverse indicator.
See Creating Payables invoice record.