Contractors often deal with reverse-charging VAT on invoices. Reverse-charging VAT means that the VAT is paid by the purchasing party. Informer has aimed to make reverse-charging VAT as easy as possible.
Reverse charge sales invoice
Checking the settings
Activating VAT rate
To use the easy reverse charge sales invoices process, you'll need to check the settings. To do so, follow the steps below:
Navigate to Settings in the left-hand menu;
Choose VAT;
Open the VAT rate BTW verlegd - verkoopfactuur;
Ensure that the VAT settings are configured as follows:
VAT report reference: 1E - Leveringen/diensten belasgt met 0% of niet bij u belast;
Reverse charge: Activated;
Hide: Deactivated.
Deactivate the setting Hide;
Save to apply the change.
Creating a sales invoice with VAT reverse charge
Once the settings are correct, you can proceed with creating the sales invoice. Follow these steps:
Navigate to Sales in the left-hand menu;
Select Sales invoices and click on New;
Under the VAT section, select Exclusive VAT and choose VAT Reverse Charge. This is essential for correctly processing the invoice. The customer's valid VAT number must be entered in the Financial tab under their profile;
Fill in the remaining details of the sales invoice as you normally would;
Click Save to create the invoice;
Send to book the invoice.
Necessary line on the pdf
When invoicing with VAT reverse charge, it must be clearly stated on the invoice. The text The VAT on this invoice has been reversed will automatically appear on the invoice, ensuring that the invoice meets the requirements of the Dutch Tax Authority.