(GBR) Create a sales order that includes items subject to reverse charge VAT [AX 2012]

Updated: March 16, 2011

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

Reverse charge VAT is required on sales and purchases of mobile telephones, computer chips, microprocessors, or CPUs for business purposes within the United Kingdom. Under reverse charge VAT rules, the buyer of the goods, instead of the seller, is liable to account for the VAT on the sale.

The seller does not charge VAT, but the items that are subject to reverse charge VAT and the total amount of reverse charge VAT are noted on the invoice. These items are also identified on VAT 100 reports as being subject to reverse charge VAT. You can use the Reverse charge sales list report to view information about reverse charge sales periodically. Depending on the setup, this information can be calculated automatically for sales orders.

  1. Click Accounts receivable > Common > Customers > All customers.

  2. Double-click a customer account.

  3. In the Customers form, on the Invoice and delivery FastTab, verify that the customer's VAT number is displayed in the Tax exempt number field. If necessary, add it. For more information, see Assign a tax exempt number to a customer.

  4. Close the form.

  5. Click Sales and marketing > Common > Sales orders > All sales orders.

  6. In the Sales order form, enter the line items for the order.

  7. Press CTRL+S to save the order. If applicable, the reverse charge VAT is calculated. When the invoice is printed, the total amount of the reverse charge is shown on the invoice.

  8. Close the form.

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