Quick Start Manual

Nederlands  | English

Manual

Intro
BizFusion Trial
User Interface
Contacts Module
Products Module
Discount Rules
Inventory Module
Sales Module
Purchase Module
Bills & Receipts
Projects
Subscriptions
Credit note / Returns
VAT Module
VAT over margin
European Trade
Foreign Trade
VAT Shifted
US Sales Tax
VAT Correction
Manufacturing
Assets Module
Current Account
Accounting Basics 1
Accounting Basics 2
Accounting Advanced
Year End
Owner Equity
Income Tax
Banking Module
Payments
Loans
Financial Lease
Cross Payment
CSV Statement
Data Import
Data Export
Plugin: MWW
Plugin: Shopify
Plugin: CCV Shop
Plugin: Shop Pagina
Plugin: WooCommerce
Plugin: Bol.com
Plugin: MyOnlineStore
Plugin: LightSpeed




 

VAT Shifted Transactions



European businesses have to deal with situations where the VAT remittance of a purchase is 'shifted' to them.
Normally, the supplier/vendor calculates the VAT on a purchase and you pay the supplier the total including VAT.
The supplier then pays the VAT to the government tax agency.
The supplier shifts this responsibility to you when the VAT is shifted.

Your supplier hands you an invoice that is VAT exclusive and contains the text: 'VAT Shifted'
You need to calculate the correct VAT amount and 'declare' this to your tax agency.
You don't have to actually pay the VAT amount, because you can immediately ask for a refund of the VAT amount.

VAT Shifts are common in industries where large companies hire smaller contractors.
The construction industry is a good example.
The smaller independent contractors shift the VAT bookkeeping to the larger company and make the
larger company responsible for declaring the correct VAT amounts.

If you're the smaller contactor in this example, then you can send an invoice to the larger company that
is VAT shifted. This means that you don't calculate any VAT on the sales invoice.

You need to create a special VAT code to handle VAT Shifted transactions.




Shifted VAT Code


You can create VAT codes where the trade type is set to: VAT Shifted.
This tells the system that no VAT should be calculated on the sales or purchase invoice.

Go to: 'VAT > VAT Wizard'

Assume that you're a Dutch company and you normally need to pay 21% VAT on purchases.
This is called VAT High. You need to create a VAT Shifted variant of VAT High.

Name: High Shifted
Percentage: 21%
Trade type: Shifted

When you generate your VAT statement, you will see that you need to pay zero VAT on shifted transactions.
Your statement shows the number of purchases for which the VAT was shifted to you, and the number of
sales for which you shifted the VAT responsibility to the purchasing party.

Your tax agency uses this information for auditing purposes.


Vorige

  

Volgende