Normal VAT

With this option, the program calculates VAT for items on this line and creates a VAT ledger entry including the amount.

Reverse Charge VAT

This option is used when you trade with other countries/regions within the EU where the purchaser must compute and settle VAT accounts with the tax authorities.

Remember to also fill in the Reverse Chrg. VAT Acc. field.This option has no effect on your company's financial statements. When you sell goods with reverse charge VAT, you neither calculate nor withhold VAT. When you purchase goods, the program will calculate the VAT amount and debit the purchase VAT account and credit the reverse charge VAT account.

Full VAT

This option is used when the amount you want to post consists entirely of VAT. This option can be useful if, for example, you make a corrective entry in order to correct a VAT calculation error.

Sales Tax

This option is used if the program must calculate US sales tax instead of VAT.