All services obtained abroad must be included in the Swiss VAT report. Unlike the import of goods that are being cleared at customs, for services obtained abroad there are no customs papers, but the VAT for this type of operation must be calculated and recovered. This self-imposition and recovery operation is called Reverse Charge.
The simplified Reverse Charge operation is a new feature of Banana Accounting Plus. Thanks to the possibility of inserting in the same cell of the VAT code both the code for self-imposition and the code for recovery, it is very easy to register.
Codes to be used
In the VAT codes table, there are specific codes to be used for services obtained abroad: codes B81-1 and M81-1 or I81-1.
They are two codes with Amount type 1, where the VAT is calculated on the Net amount (without VAT).
- the B81-1 code calculates a VAT debit amount
It is important that in the Complete view> the column Don't Warn is activated "Yes", otherwise you get an error message.
- the M81-1 or I81-1 code calculates a VAT credit amount
How to enter a transaction
The entry is made by applying in the VAT code column, a double code B81-1 (self input) and I81-1 (or M81-1).
By entering the double code, the programme registers both the VAT due and the recoverable VAT in the account 2201 VAT return.
VAT on services obtained in a foreign currency
When the recording of services abroad involves a foreign currency account, the Reverse Charge must be registered onto two lines:
- Register foreign purchases in foreign currency without entering any VAT code.
- On the next line, to be able to register the Reverse Charge, register:
- In the Currency column register the amount converted to base currency.
- In the Debit and Credit column a giro account (1090) is registered.
- In the VAT Code column apply the double code B81-1 for self-imposition and M81-1 or I81-1 for recovery.
- At the end of the entries the claering account must be zero.
VAT on services obtained abroad with the Swiss flat tax rate VAT method
When adopting the Swiss flat tax rate VAT method, you need to register the purchase with the B81-1 VAT code for self-imposition.
You don't need to enter the VAT recovery transaction, as this method doesn't allow any deduction on purchases, including those occurred abroad.