In order for a supplier's invoices to qualify for reverse charge tax, it is essential that the supplier operates under a different Tax Authority than the Legal Entity. A tax band of either Standard or Reduced Rate would need to be applied, as illustrated in the example below, assuming your legal entity tax authority is set as the United Kingdom.



If the received invoice includes tax, when the Invoice total is entered, the Gross amount is equal to the Invoice total, and the Tax is calculated backwards from the Gross, as shown in the screenshot below: