How do I setup and add a VAT Reverse Charge (reverse tax)?

To set up and add a VAT Reverse Charge (or Reverse Tax) in Contractor Foreman, first, go to the Main Menu of Contractor Foreman. From here, navigate to Settings, and go to the Financial Settings.

Scroll down to find the setting field called Tax Rates. This section is where you manage all your tax rates, including creating new ones and setting up reverse charges. You will see a button labeled Add Tax Rate +. Click this to start the process of creating a new tax rate.

On the next screen, you’ll have options to configure the tax rate. You will need to enter the details for the new tax rate you want to create. Start by providing a name for the tax, and then you can select whether you are setting up a Single Tax or a Multi-Tax item. This option allows flexibility depending on how the tax is structured in your region.

Below the tax name, you will see a checkbox labeled Tax is Reversible. Check this box if you are setting up a Tax Reverse. If the box is selected, the tax will be applied to the Invoice or Estimate and then deducted, causing the Total to match the Subtotal. Additionaly, enter the percentage of the tax and make sure to review the fields carefully and save changes.

After setting up the Tax Reverse, you can apply it to any future invoices.