Details
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Type:
Bug
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Status: Reopened
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Priority:
Major
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Resolution: Unresolved
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Affects Version/s: 5.2.1
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Fix Version/s: Short Term
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Component/s: Client Interface, Staff Interface
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Labels:None
Description
"Inclusive" taxes only (Not Inclusive (Additive) or Exclusive) should not appear on invoices IF the client is not being charged the tax (it is being removed from the package price). If they are being charged the tax, it should still appear.
For the "Inclusive" only type, remove the line between Subtotal and Total that says:
TAX NAME (TAX %) AMOUNT
e.g.
VAT (20%) $0.83
Per
"In the case of the supply of goods or services for which VAT is accounted for under the reverse charge mechanism, the VAT payable is not displayed on the invoice issued."
The message on the invoice that says:
The VAT Reverse Charge Mechanism is used. The tax liability transfers to the purchase.
SHOULD CONTINUE TO BE PRESENT. DO NOT REMOVE THAT.
Activity
Jonathan Reissmueller Good find. Looks like different countries have different rules on this, and this may need to be implemented as a setting.. then people can disable display of the tax rate and amount on invoices if they want to through the setting, but default to current behavior. What do you think? Maybe we can push this to a release after 5.3.0.
Paul Phillips
added a comment - Jonathan Reissmueller Good find. Looks like different countries have different rules on this, and this may need to be implemented as a setting.. then people can disable display of the tax rate and amount on invoices if they want to through the setting, but default to current behavior. What do you think? Maybe we can push this to a release after 5.3.0. Since each country has different rules on how to handle VAT, I think it would be appropriate to implement those rules in the Tax Providers. This way we can define the behavior for the invoices differently for each country or region.
Abdy Franco So it would be determined based on whether EU VIES VAT or UK HMRC VAT is enabled? If EU, would we base it on the Tax Home country? What if both EU and UK VAT are enabled?
Paul Phillips
added a comment - Abdy Franco So it would be determined based on whether EU VIES VAT or UK HMRC VAT is enabled? If EU, would we base it on the Tax Home country? What if both EU and UK VAT are enabled? I believe it would be dependent on the purchasing client's country.
Sorry to chime in this late, but this task could be an issue. The UK guidelines state:
https://www.gov.uk/guidance/vat-reverse-charge-technical-guide#invoices