Using the Reverse Charge VAT code requires the VAT rate to be created and that the customer, stock and price records are configured accordingly. The dialog message above assumes that your Reverse Charge VAT code is V, which is the default for a new installation.
To allow a customer to be used for Reverse Charge VAT:
Click Debtors, Customers (Ribbon); click Sales Ledger, Customers (Classic)
Select the required Customer
Click Edit, click VAT
In the VAT Registration section, enter the customer's VAT Registration Number
Click Save
If you have completed the above steps and are still receiving, the message to say that the V VAT Code, cannot be used you need to check the VAT Setting on the Addresses.
Click Debtors, Customers (Ribbon); click Sales Ledger, Customers (Classic)
Select the required Customer
Select Addresses icon in the top toolbar
Go to the Address that has the Invoice
In the VAT Registration section, enter the customer's VAT Registration Number
Click Save
If you receive the message to say that address has already been used
Insert a New Address Line, replicating the that address, same settings I,D,S etc - this then populates with the VAT Registration.
Save
Then mark the original address line as No Longer Use
Save
To allow a Stock item to be used in a Reverse Charge VAT calculation:
Click Stock Control, Stock (Ribbon); click Stock Control, Stock Records (Classic)
Select the required Stock Code
Click Edit, click Info
Check Reverse Charge VAT applies is selected.
Click Save
To allow a Price Record to be used in a Reverse Charge VAT calculation:
Click Selling, Price Records (Ribbon); click Sales Orders, Price Records (Classic)
Select the required Price Records
Click Edit, click Info
Check Reverse Charge VAT applies is selected.
Click Save