(IND) Set up a reverse charge percentage

  • Article

Important

This content is archived and is not being updated. For the latest documentation, see Microsoft Dynamics 365 product documentation. For the latest release plans, see Dynamics 365 and Microsoft Power Platform release plans.

Applies To: Microsoft Dynamics AX 2012 R3, Microsoft Dynamics AX 2012 R2

Use the following procedure to specify the reverse charge percentage for an item sales tax group.

Note

This topic does not apply to versions of Microsoft Dynamics AX 2012 prior to cumulative update 1 for AX 2012 R2.

  1. Click General ledger > Setup > Sales tax > Item sales tax groups.

  2. Select or create an item sales tax group. For more information, see (IND) Create item sales tax groups and (IND) Item sales tax groups (modified form).

  3. In the Accounting basis field, select Point of taxation basis as the accounting basis on which to calculate the service tax.

  4. To calculate the reverse charge on the service tax, in the Reverse charge percentage field, enter the reverse charge percentage that is paid by the service receiver. For example, enter 50 if the service receiver is responsible for 50 percent of the tax.

    Note

    To indicate that 100 percent of the service tax is paid by the service receiver, in the Reverse charge percentage field, enter 100 as the reverse charge percentage.