How do I post reverse charge VAT transactions?
To post a invoice in IRIS Financials from suppliers that do not charge VAT, the VAT must be entered. For example, if they are based outside the UK.
If you are unsure whether the transactions being posted must have VAT entered, contact your organisation's accountant.
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Enter the details of the invoice:
- in IRIS Financials post a Purchase Invoice (PINV), and select the required in VAT Code from the following:
- RCG - Reverse Charge Goods — for tangible items, such as office stationery
- RCP - Reverse Charge Purchases - for intangible items, such as fees for services
- in IRIS Financials Purchasing create an invoice, and in VAT Code select
If creating an invoice for goods or services your organisation is selling, in VAT Code select RCS - Reverse Charge Sales.
- in IRIS Financials post a Purchase Invoice (PINV), and select the required in VAT Code from the following:
For transactions with RCG or RCP VAT codes, a VAT - Reverse Charge (VARC) document is automatically posted to post the VAT amounts to the required Reverse Charge nominal.