How to configure EC reversed VAT

Starting 2010, between countries of the European Communion, VAT is now charged in the country of the buying party except for catering and car rental without driver. So, most services will have 0% VAT on the invoice IF the debtor has a VAT number and has his seat in an EC Country and the FBO also is legally located in a different EC country.

How to activate?

Enter 'Is EC reversed VAT applicable' for all products

By default the field 'Is EC reversed VAT applicable' is true for all products. For catering and car rental without driver the flag must be unchecked.

The products report can be used to check which products need to be modified. Column BJ contains the 'Is EC reversed VAT applicable'.

Enter 'VAT number' and 'Country for VAT purposes' for all debtors

By default the field 'Country for VAT purposes' is equal to the Country from the Address section.

The contacts report can be used to check which contacts need to be modified. Column Z contains the 'VAT number' and column AV contains the 'Country for VAT purposes'.

Enter the 'Administration owner' for all administrations

By default this field is set to the organization linked to the system account. The country of this organization is used in the reversed VAT logic. Usually this will be set correctly already.

Setting VAT invoice codes

On the handling order, FBO One can print VAT percentages or a VAT invoice code. Because there are now multiple zero percentage VAT codes (one thats really 0, for instance when there is an AOC and one that only means VAT is reversed) the invoice code of the VAT code must be printed instead. For the EC reversed 0%, the invoice code will be set to 'REV' automatically, for the other VAT levels you may want to set invoice codes. If an invoice code is blank, the percentage will be printed.
In the Administration - VAT codes screen, the invoice code can be entered for each VAT code.

Enable printing the VAT invoice code

In Administration - Settings the setting 'PrintVatInvoiceCode' must be set to 'true' to print the VAT codes instead of the percentages. If the setting is 'false', only percentages will be printed.

Enable the EC reversed VAT logic

In the Administration - Administrations screen the 'EC reversed VAT logic enabled date' field must be set to '1-Jan-2010'. Note that this needs to be entered per administration.

Add an explanation of the EC vat code on the invoice.

In the Administration - Settings screen the report setting 'HandlingOrder-SummaryInfo' should contain a text like 'Vat code REV indicates that VAT is not charged based on the reversed VAT rules of the European Communion.' This text will be printed at the bottom of the handling order.

See also

VAT in Europe

EC reversed VAT logic