Tax
VAT Reverse Charge on Imported Services
Accounting for VAT on services purchased from a foreign vendor (e.g., Google Ads or a consultant in Europe).
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Marketing / Professional Expense | Expense (+) | 1,000.00 | - |
| VAT Input (Reverse Charge) | Asset (+) | 160.00 | - |
| VAT Output (Reverse Charge) | Liability (+) | - | 160.00 |
| Accounts Payable / Cash | Liability (+) | - | 1,000.00 |
💡 Accountant's Note
In Jordan and the GCC, when you buy services from abroad, you 'self-assess' the tax. You record both an Input and Output VAT, which usually nets to zero but must be shown on the tax return.
⚡
Automate this entry with the JEH Accounting Suite
Stop doing manual entry. Our VBA-powered ERP automatically generates your ledgers, Trial Balance, and Financial Statements.
No Subscriptions. Own your data.
QA
Expert Analysis by Qusai Ahmad
General Accountant Supervisor & IFRS Specialist
Specialized in SAP GUI automation and Middle Eastern tax compliance. Building digital tools for the next generation of finance leaders.