VAT reverse charge
Requirement
In some industries, the buyer can and does agree to let the supplier manage the VAT duty. The kept VAT must be paid to the authorities.
In this country, the VAT reverse charge is required for construction services.
M3 solution
Functionality is provided by M3 to keep the supplier’s VAT and reduce the payment amount.
Configuration guidelines
| Program ID | Program name | Description or comment |
|---|---|---|
| APS905 | Settings – Accounts Payable | Clear the 260 Withholding tax using flexible service codes check box. |
| CRS063 | Supplier Service Code. Open | Create a service code with a withholding tax
percentage. Connection with Supplier. |
| CRS624/F | Supplier. Define Purchase & Financial | Specify the default service code. See the settings
for (CRS063). Set the Tax withhol mtd (Tax withholding method) field to 3. |
| CRS165 | Number Series. Open | Create number series 84 for the numbering of supplier certificates. |
| CRS395 | Accounting Rule. Set | Configure accounting rules for accounting type 396. |
| APS035 | Settings – Supplier Tax | Optional |
| APS037 | Supplier Tax. Open Exemption Letter | |
| APS425 | Supplier Tax Report. Display Invoices | |
| APS430 | Supplier Tax Report. Create Proposal | |
| APS555 | Supplier Tax. Print Details |