Reverse charged rates only apply to purchases.
The reverse charge is when you create input (purchase) VAT charge and an output (sales) VAT charge on a VAT free purchase transaction.
This way if you have say 20% exempt supplies, and you have imported a service from abroad for 100. You have this effect going on for the RCM transaction.
| Tax item | Tax w/o RCM | Tax w/RCM |
|---|---|---|
| Taxable amounts | ||
| Output | 0 | 100 |
| Input | 0 | 100 |
| Tax amounts | ||
| Output | 0 | 5 |
| Input | 0 | -5 |
| Apportiontment 20% of input VAT | 0 | 1 |
| Net tax liability on import | 0 | 1 |
Note that apportionment only affects input VAT claimed.