VAT requirements

Please write requirements of Your country here . Please check which are fulfilled and how it is done

Common EU requirements

Prices with VAT in webshop

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Separating collected and due taxes is mandatory and done in OFBiz though no VAT specific accounts exist. See "Purchase order VAT" section below. We need at least an incoming tax (sales) GLAccount and an outgoing tax (purchase) GLAccount. Here is an interesting comment by Enrique Ruibal A.

Discounts applied per line

Currently OFbiz applies global discount on invoice level. This is not always valid for VAT depending on countries.
For instance it's OK for UK, and maybe Germany, but not in France and Italy where they should be grouped by VAT rates.

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The price for the customer is the same. But the VAT to be paid to the tax authority is wrong in the 1st case. It's also a problem if your client want to recover VAT from tax authority. Another way is to calculate based on the price including VAT but to remove the non exigible part (here 19.6 - 17.64 = 1,96, ie 10% of the total VAT paid in the 1st case)

Reporting

In most countries there is need for monthly or in general periodic VAT reports with all sales and purchases.

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Since 1st January 2010, VAT is handled another way in EU (at least in France). In France for instance, you must declare (on the Net) the fiscal values (for instance total amount, without taxes, due for services supplied in EU, but not in France) each 10 of month for the previous month. This results from this EU directive in order to prevent VAT carrousel. You don't charge VAT, but must show the customer VAT EU number on invoices.

Dates

There is not always direct connection between invoice date and VAT. E.g in Poland if purchase invoice is received more than 2 months from purchase it will not decrease amount of VAT to be paid. Same in France, must be the same month, but you may regularise in a delay of 2 years.

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For Export invoice there can be requirement for document which will confirm that goods has been exported (to apply 0% VAT)

Purchase order VAT

I will implement this shortly the following way: (have a customer who wants it)

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Paul Foxworthy 2010-10-21 The trouble is that the product store is being used to determine the tax that applies for sales, but there is no product store for purchases. There needs to be another way of determining the tax that applies to purchase orders. It is true, as tax on a purchase order is just an estimate , but if you are paying at the time of purchase order, you want an accurate estimate so you pay the right tax with the order.

Shipment cost VAT

Shipment cost should be VAT aware (amounts should be splitted for netto + VAT on invoices). There is a field for that in Tax Autorithies/Product Rate : TaxAuthorityRateProduct.taxShipping.

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For other more complex cases, please refer to http://bofip.impots.gouv.fr/bofip/705-PGP

Rounding

Invoices requirements (including rounding)

We should research the common ground for invoices and POS receipts Quoting Jacopo in this commit
Now most of the mandatory information required by EU/VAT countries as described here
This commit implements

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• The tax amount to pay and, by rate, VAT excluded total and corresponding tax (If the liable is brought to bill another VAT that the French VAT, she/he must specify very clearly that it is a tax of such or such foreign country).
• If need be, a mention indicating that the operation benefits from a measure of exemption (with law reference), or of an auto-liquidation or profitable margin system.
• The date at which the payment must take place,
• the rate of the payable penalties begining the day following the date at which the payment must take place,
• discount conditions.

Exemption tracking

Exemption and zero rate adjustments are not tracked at the accounting level (Invoice and InvoiceItem entities). This makes sense as no payments can be applied against them. Anyway it's not an issue as we can trace back to order adjustments (OrderAdjustment entity) from invoices through the OrderBilling entity.

Requirements by region

• VAT link many other languages links from this link
• Eu VAT specificities change language if you need

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