Forum - Reverse VAT tax rules

Reverse VAT tax rules

Paul Timms

11-8-17

We recently upgraded a customer's system from 8.2 to 8.4. They've been using a tax rule (NL > Settings > Tax Rules) with code 99, type "Reversed", and have set this against VAT code 50 on flip B of the VAT Codes screen. VAT Code 50 is set up at 19%.

This allows a purchase invoice to be posted using VAT code 50. If the row sum was 1000, the calculated VAT is 190, however because of the reverse VAT tax rule, the TOTAL field should be 1000, not 1190. When OKed, the NL transaction does a reverse VAT posting.

In 8.4, it does not let you save the purchase invoice with this scenario. It says "Transaction out of balance". I have compared the procedure VISumup between 8.2 and 8.4 source code, and can see that the code relevant to tax rules has been removed from 8.4, and therefore the purchase invoice fails the balance check. Is there a reason why this was removed? Is there a different way to do this in 8.4? Or is it simply a bug?

Agnieszka Klimkiewicz

11-9-17

Hi.

We changed functionality regarding this part. As it is country specific this is available per country. Look at how it is done for Lithuania that requested that. If it is same for UK than please request adding UK to see and be able to use same functions as Lithuania.

Aldevinas Katkus

11-9-17

In Lithuania we need to calculate the reverse charge VAT amount and print it on the invoice. AFAIK, some countries just print "reverse charge VAT ..." on the invoice and the total does not include reverse charge VAT amount, but we need VAT to included in the totals.

Paul Timms

11-9-17

This is for Germany. The purchase invoice total does not include the VAT amount. I have no idea whether it should, but that's how they've been using it previously.

Agnieszka Klimkiewicz

11-10-17

Hi.
There is a separate functionality for sales and purchase part support of reverse VAT. So please do not confuse those two. Here question was about purchase ledger. For countries that want Purchase invoice to be booked automatically if Reverse VAT code is used we did change functionality and as base you can look at how it was programmed for Lithuania. As not all countries use VAT code on Purchase invoice in this case (for example Poland does not) so if you have same need that in Lithuania for that part we can add it for any other country that requests that.

For Sales part (sales invoice creation) we add support to issue Sales invoice with correct texts and it is applied since 8.3 for countries that were interested (at start they were UK, Lithuania and Poland).

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