If you have acquired a fixed asset from a VAT-registered business in another EU Member State, it must also be reported on the VAT statement. To ensure that reverse charge mechanism is applied correctly, adjustments must be made in the VAT statement settings.

Click the Actions button next to the statement -> View VAT statement settings

Add the required fixed asset account (e.g. 1820 Machinery and equipment (assets)) to the account rules of line 1, under the VAT type “0% EU purchased goods”. Separate the account from others with a comma, do not use spaces, and make sure to place a minus sign in front of the account.
Add the same account to line 6.1, but without the minus sign.

Save the changes.

If you need to use different fixed asset accounts for recording intra-Community fixed asset purchases, add all required accounts in the same way.

When entering the purchase invoice, use the appropriate fixed asset account and make sure to select the VAT type to “0% EU purchased goods”, so that the information is correctly included in the VAT statement.

Since the VAT on fixed assets must also to be reported separately, this adjustment must be made in EMTA (i.e. the VAT amount must be added manually). Unfortunately, this cannot be done in the program, as it would otherwise be counted twice as input VAT.

If you have any additional questions, please write to us at support@simplbooks.ee