In order to correctly handle VAT on purchases from the EU, you must set up at least one VAT business posting group for reverse charge VAT.

To enter basic information for reverse charge VAT on purchases

  1. In the Search box, enter VAT Posting Setup, and then choose the related link.

  2. In the VAT Posting Setup window, enter a combination of a VAT business posting group and a VAT product posting group and fill in the fields with general ledger account numbers.

  3. In the VAT Calculation Type field, select Reverse Charge VAT.

  4. Fill in the Reverse Chrg. VAT Acc. field with the relevant general ledger account number.

Repeat this procedure to set up as many combinations in the VAT posting setup as necessary.

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