VAT requirements
Please write requirements of Your country here . Please check which are fulfilled and how it is done
Miscellaneous references
- Here is the data model reference
- We should use this Jira issue to federate related tasks. There are already some interesting links from there...
Common EU requirements
Prices with VAT in webshop
Implemented but some issues OFBIZ-1086. In France this is required : you must show your prices VAT included if you are selling to public (B2C). When you sell to professionals (B2B), by usage, you show that your prices are VAT excluded.
Tax Code of Seller and buyer on Invoice (B2B)
Implemented see OFBIZ-362 Check here for more
To validate a VAT European Number. More at. Note that there is also a SOAP service available for validation (could be used in validatePartyTaxIdInline)
Configuration of VAT GL Account
Is it done ?
No, there are only US and CANADA Sales Tax accounts for now.
Should it be per rate - different accounts for collected and duty tax for each rate ?
Per rate is not an obligation. A problem here is that it should be dynamic since rates can be created dynamically.
Separating collected and due taxes is mandatory and done in OFBiz though no VAT specific accounts exist.
See point 7. We need at least an incoming tax (sales) GLAccount and an outgoing tax (purchase) GLAccount.
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.
Reporting
In most countries there is need for monthly or in general periodic VAT reports with all sales and purchases.
The report must be splitted by rates since, most of the time, totals by rate are needed for the final (official) report.
Exemption and zero rate can be dealed as ordinary rates (see section 11). This report should allow to fill the official report in all cases.
In EU (at least in France) if you have a VAT registration number even if you don't pay VAT for purchases outside of your country (but in EU) you must declare the VAT part in your periodic VAT report. As a minus (debit) and a plus (credit) : it's a neutral operation, just intended for your administration (to cross-check outside VAT, this in order to prevent VAT carrousel effect). If you don't declare these amounts you may be fined (it's 5% in France). So there is a need to know this information. For an automated reporting it's not easy to deal with though...
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.
Some invoices can be not valid.
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)
- Add a second glAccountId for outgoing tax to the TaxAuthorityGlAccount.
- Adjust the programs to calculate the vat (sales tax) on purchase orders the same way as sales orders, but use for the productstoreId a blank entry.
JLR note 2008/11/18 : not sure who wrote that, nothing in Jira yet.
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. But shipping amounts are no VAT splitted.
Rounding
Invoices requirements
We should research the common ground for invoices and POS receipts
UK requirements (from this interesting thread. We should check if OFBiz is OK, I guess so but maybe some quirks)
VAT invoices must show:
- an identifying number;
- your name, address and VAT registration number;
- the time of supply (tax point);
- date of issue (if different to the time of supply);
- your customer's name (or trading name) and address;
- the type of supply (see 16.3.2 below); and
- a description which identifies the goods or services supplied.
For each description, you must show:
- the quantity of goods or extent of the services;
- the charge made, excluding VAT;
- the rate of VAT;
- the total charge made, excluding VAT;
- the rate of any cash discount offered;
- each rate of VAT charged and the amount of VAT charged at each rate and shown in sterling; and
- the total amount of VAT charged, shown in sterling.
It seems that for most UE coutries (at least UK, France and Italy) it's not mandatory to calculate VAT for each item but for each existing rate in the invoice.
France requirements (from Wikipedia in french)
- An unique bill number based on a chronological and continuous sequence,
- the complete names of salesman and customer with respective addresses,
- the individual number of identification to the VAT of the salesman and customer (the number of VAT of the customer remains optional for operations realised in France),
- the date back to delivery or bill transmission.
On each invoice line you must show
- The realisation date of the sale/service or deposit payment,
- for each of the delivered goods or services: quantity, name, VAT excluded unitary price, VAT rate or, if needed, exemption,
- all reductions, handing-over, rebates or discount obtained and calculable at the time of the operation and directly linked to this operation.
Finally, must be shown
- 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
requirement |
region |
needed? |
---|---|---|
Unique invoice number based on a chronological and continuous sequence |
France |
yes |
|
Germany |
yes |
|
Spain |
yes |
Discounts applied per line |
|
|
Ofbiz supports invoice level discounts. This is not valid for VAT. For VAT, amount for each line must be known, so discounts |
Poland |
yes |
|
Germany |
yes |
|
France |
yes |
I.e. there can be invoices with different VAT rates per line. |
Spain |
yes |
Rounding |
|
|
Important: rounding may only take place one time per VAT rate (after all calc. VAT amounts are summed up for that rate) |
Germany |
yes |
|
France |
yes |
|
EU |
yes? |
Exemption |
|
|
Some products can have different tax rate when selling to different type of customer. E.g. In Poland flat/house renting is 0% for individual |
|
|
Similar situtation in Germany: FastFood restaurants: take-a-way food has 7%, stay-here is 19%, usually handled via different products, too. |
|
|
Same in France : only rates change (5.5% and 19.6%) (I wonder why they did not choose 5.55468 and 19.65548754, hey it's France ;o) |
|
|
Has different VAT rates, for different type of goods |
|
|
Official EU document Wikipedia (could be more updated than EU document) |
EU |
yes |
0%, 7%, 19% |
Germany |
yes |
2.1%, 5.5% 19.6% (there is no 0% rate in France only conditionnal exemption) |
France |
yes |
0%, 4%, 7%, 16% |
Spain |
yes |
Apply VAT for sales in INTERNAL_ORGANIZATION country Official EU document |
|
|
|
EU |
yes |
Apply VAT for sales outside EU |
|
|
Buyer may get VAT back from German Customs Auth. when he proves, that goods leave Germany (or EU?) |
Germany |
yes |
There are some exceptions with DOM-TOM (no metropolitan territories) and electricity. |
France |
no: goods |
|
Poland |
yes |
|
Spain |
no |
Apply VAT for sales outside INTERNAL_ORGANIZATION country && inside EU && with valid VAT ID (B2B) |
|
|
INTERNAL_ORGANIZATION may have to proof that goods left Germany (for Tax Auth.) |
Germany |
no |
Found no such requirement in France, but sounds weird there is not a such need |
France |
no |
In Poland there is also need for spedition document to have proof that goods left Poland |
Poland |
no |
|
Spain |
no |
Apply VAT for sales outside INTERNAL_ORGANIZATION country && inside EU && without valid VAT ID (B2C) |
|
|
|
Germany |
yes |
|
France |
yes |
|
Poland |
yes |
|
Spain |
yes |
Apply VAT for purchases like sales |
|
|
|
EU |
yes |
Common South America requirements
VAT withholding
In Colombia applies Withholding of VAT. It is called "retention at the source". Part of calculated VAT adjustments are not paid(but retained) by the buyer.
Different % of retention
Companies in Colombia are divided in classifications according to the social activity of the company.
The value of the retention at source depends on the relationship between companies(payee and payer).
Order and Invoice amounts
The order and invoice total amounts should include the full amount of the tax, not only the part that issuer will pay to the tax authority. The invoice also should contain information about the amount of the retained tax amounts.
GL posting
Withholding amounts should be posted to separate GL account.INTERNATIONAL VAT/GST GUIDELINES