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.

United Kingdom specifics

The VAT domestic reverse charge procedure is an anti-fraud measure designed to counter criminal attacks on the UK VAT system by means of sophisticated fraud. This VAT reverse charge procedure, which applies to the supply and purchase of specified goods and services, is not to be confused with the reverse charge for intra-community EU acquisitions.

How Infor meets the requirement

You must enable the VAT reverse process. Perform these tasks to enable and process VAT reverse charges:

See Enabling the VAT/GST reverse indicator.

See Creating Payables invoice record.