SageForum for UK versions of Sage 50- Help and support.

One of my clients receives invoices for services (i.e. not goods) provided in Israel. The invoices are in Pounds, so no currency conversion issues. However, we have to enter the VAT. On top of that the VAT is reclaimed. I believe it's called Reverse Charge VAT, but I've never dealt with this before. I haven't found the exact case on sage help so I am unsure how to proceed.

So, I have an invoice for £5,000. The VAT is £1,000. My client has paid the supplier £5,000. How is this correctly entered?

I had a look at https://my.sage.co.uk/public/help/askar ... leid=11289 which mentions Tax code T24, and entering a nil tax amount. But looking at the standard sage tax code set up, I noticed code T20 which is labelled Reverse Charges. What is the difference between these?

Israel is not part of the EC.

If the vat can be reclaimed it must be by some other means than normal.

I suggest you contact a professionally qualified accountant with international experience to find out how it is reclaimed.

Thank you Bruce. The company have dealt with the reclaim from Customs authorities apparently. I just have to enter it into Sage so that it shows in the accounts. What would you recommend?

Another question, How are we defining EC? Is that the same as the EU? (The EC I'm familiar with ceased to exist in 2009)

Treat it as duty. Post the invoice as 2 splits putting the duty/vat into a control accont, then reclaim it back to that account later.