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.
Sales Invoice with Reverse-Charged VAT
Check the VAT rate
First, you need to check whether the settings are correct. To do this, go to Settings > VAT.
In the settings for reverse-charged VAT on sales invoices, make sure the following is configured:
VAT report reference: 1E - Supplies/services taxed at 0% or not taxed at your end.
VAT Reverse charge: Checked.
Hide: Off.
To be able to use reverse-charged VAT when invoicing, a valid VAT number must also be entered for the customer under Relations > Financial tab.
Creating a Sales Invoice with Reverse-Charged VAT
If the settings are correct, the invoice can be created. There are two different ways to choose a reverse-charge invoice:
Option 1: Under the VAT type at the top of the invoice, where the invoice date can also be entered.
Option 2: Among the different VAT percentages.
Displaying Reverse-Charged VAT on the PDF
After saving the invoice, the phrase "The VAT on this invoice is reverse-charged" will automatically appear on the invoice. This ensures that your invoice complies with the requirements of the Dutch Tax Authorities.