1) On the issued invoice, select the posting scheme Sales of Goods/Services, which carries the VAT fulfillment code "Reverse Charge" – this setting automatically fills in VAT lines 25. (If you do not yet have such a posting scheme, you will need to create one.)

2) On the issued invoice – in the Control Statement Line field, select A.1

3) Document line items are automatically inserted with a VAT rate of 0%.

You must also fill in the Reverse Charge VAT Code on the line item, under the Posting/Details tab.

If you are using items from a price list, the code can be added directly in the price list.

If the fulfillment code is not filled in, you will be notified by a prompt:

Flexi contains a code list – List of Goods under the Reverse Charge VAT Regime

For some codes, the threshold for reporting reverse charge liability applies from an amount of CZK 100,000.

The application automatically detects whether the total value of the document is less than CZK 100,000.

In that case, the line items are posted with VAT.

Example – a company sells mobile phones. When selling a single mobile phone for CZK 20,000 and the document is set up with reverse charge, you will be alerted to an incorrect line item configuration.

After clicking Yes, the VAT rate on the document line item will change and the VAT will be recalculated.

Using a posting scheme with the fulfillment code – Reverse Charge – User Choice, you can control whether the application should bypass the CZK 100,000 threshold check for selected fulfillments.

PDF print output – invoice with reverse charge VAT

The mandatory text The tax will be remitted by the customer. is automatically printed on the document.

1) Select the posting scheme Purchase of Goods/Services, which carries the VAT fulfillment code "Reverse Charge" – the VAT lines (10–11, 43–44) will be filled in automatically.

2) For the Control Statement line, select B.1

3) Enter the amount via line items with the appropriate VAT rate, so that the VAT is calculated and displayed on both the invoice and the line item.

On the Posting/Details tab, fill in the Reverse Charge VAT Code.

If this field is left blank, the application will display the following error:

4) The document header shows the net amount and the VAT amount, but the total amount payable does not include the VAT value.

That is, net CZK 2,000 + VAT CZK 420, but the total invoice value is CZK 2,000.

Right to deduct – reverse charge VAT can be found in the menu Accounting – Accounting Outputs – VAT Basis Documents.