Implementing Cloud Financials: From Empty Pod to Go-Live · Module 7 · Tax
Recovery and self-assessment
Lesson 72 of 153 · 1 min
Recovery is input tax you can reclaim — full, partial, or none, depending on what the purchase was for. Partial recovery exists for entities with both taxable and exempt activity, and the recovery rate is a percentage that comes from the client's tax adviser, not from you. That is the second time; there is a third. Self-assessment, or reverse charge. You receive an invoice with no tax on it and must account for both sides yourself — common on cross-border services. Two journal lines, netting to nothing, and both reportable. What that means for configuration is the offset tax setup, and the fact that the accounting looks strange until you understand what it is doing. Whatever you configure must produce the return the client actually files. Ask to see a filed return before finalising anything. A configuration that is internally correct and produces a return nobody can file is not…
The full lesson is part of the course
The video, the complete written lesson and the module quiz are included in Implementing Cloud Financials: From Empty Pod to Go-Live, with a certificate on completion and a fourteen-day refund window.