GST Compliance | Reverse Charge
Handled at capture. Not reconstructed.
When a bill from an overseas supplier lands, the reverse charge is computed and both the output and the input sides post to the right boxes on the return. The alternative is a sweep at quarter end trying to remember which of your software subscriptions came from abroad.
What the system does
Capability, input, output.
| Capability | Input | Output |
|---|---|---|
| Identify at capture | Bill from an overseas supplier | Flagged as in scope when it is entered, not at period end |
| Compute both sides | The flagged bill | Output and input postings raised against the same bill |
| Return feed | In-scope bills for the period | The right boxes on the F5 populated, traceable to the bill |
| Vendor master | Supplier country and status | Scope decided from the vendor record rather than per bill by memory |
| Audit trail | Every reverse-charge posting | The bill, the computation and the posting held together |
-
Identify at capture
- Input
- Bill from an overseas supplier
- Output
- Flagged as in scope when it is entered, not at period end
-
Compute both sides
- Input
- The flagged bill
- Output
- Output and input postings raised against the same bill
-
Return feed
- Input
- In-scope bills for the period
- Output
- The right boxes on the F5 populated, traceable to the bill
-
Vendor master
- Input
- Supplier country and status
- Output
- Scope decided from the vendor record rather than per bill by memory
-
Audit trail
- Input
- Every reverse-charge posting
- Output
- The bill, the computation and the posting held together
Reverse Charge FAQ
What buyers ask.
How does the system know a bill is in scope?
From the vendor record rather than from someone remembering. An overseas supplier is tagged once at the master, and every bill from them is assessed on that basis when it is captured.
We buy a lot of overseas software. Is that the main case?
It is usually the one teams miss. Subscriptions bought on a card by someone outside finance are exactly the bills that never get flagged, which is why the scope decision sits on the vendor and the capture step rather than on a quarter-end review.
Does the input side get claimed automatically?
Both sides post, and the input side follows your normal input tax rules, including any apportionment where you make exempt supplies. It is not assumed to be fully claimable just because it was self-accounted.
What if we get the scope wrong?
The assessment is visible on the bill with the reason, so it can be corrected before the return is drafted rather than discovered afterwards. Corrections carry their reason into the audit trail.
See which of your bills are in scope.
Connect your books, free. Overseas supplier bills are flagged and the reverse charge computed on your real data.