Cross-border transactions or services involving non-resident counterparties require careful reading of the service, contract, documentation and tax impact before the accounting treatment is recorded.
Understand the transaction first
We review the service or transaction, the parties, invoice or supporting document and the accounting treatment before considering whether reverse-charge treatment may be relevant.
Review points
- Contract or agreement and description of the service.
- Supplier information and the circumstances of the transaction.
- Invoice or claim document and related transfers.
- Accounting entry and the filing period linked to the transaction.
Outcome
We define the transaction impact and the treatment and documentation steps required based on the facts of the reviewed file.
The treatment is not determined simply because the supplier or invoice is foreign. The nature of the transaction is the starting point.