Search HansaManuals.com HansaManuals Home >> Standard ERP >> Purchase Ledger >> Purchase Invoice Register Previous Next Entire Chapter in Printable Form Search This text refers to program version 7.2 Operations Menu - Purchase Invoice - Create Internal Invoice This function is used in some countries (for example Poland) to help with EU VAT reporting.When purchasing Items from other countries in the EU, you do not pay VAT to the Suppliers but you need to pay VAT at the domestic rate that would apply had you purchased the Items from local Suppliers. This is known as Acquisition VAT. You can reclaim this VAT, if the acquisitions relate to VAT taxable supplies that you make. One method for handling Acquisition VAT is to use a dedicated VAT Code in the relevant Purchase Invoices, as described in the Inside EU VAT Zone example on the VAT Examples page. An alternative method is to create Internal Invoices from the Purchase Invoices. Internal Invoices will be in your home Currency (Base Currency 1) and will post to both the Output and Input VAT Accounts. In the countries that use the VAT Report Sales and the VAT Report Purchases reports (for example, Poland), the benefit of using Internal Invoices is that they will be visible in both reports (i.e. the reports will show both the Input and Output VAT implications). As a result, both reports will match the Nominal Ledger. Purchase Invoices that use a dedicated VAT Code will only be shown in the VAT Report Purchases report. An Internal Invoice will also provide an explicit record of an Acquisition VAT transaction, which was a legal requirement in Poland until 2014. On the other hand, Internal Invoices will not be included in the VAT Listing report, so if you are using this report you should not use Internal Invoices. Follow these steps:
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