First of all my compliments for the great software, thank you for that!
I have a question about the dutch tax-report, category 2a ''Verleggingsregelingen binnenland"
In an older forum topic (Where is the custom VAT report that I made? - #42 by dalacor) I read about it, but I think there is no solution for category 2a at this time, correct?
When I use vat-code “BTW 0% verlegd” in a incomming invoice, in my tax-report (latest version in the cloud edition) there is only an amount in the left colomn. The right column is empty. This should be the amount of tax that had to be paid.
Category 2a is used for example by constructors who hires another constructor (onderaannemer) within The Netherlands.
It works exactly the same way as category 4a. You pay the tax (2a) and get it back (5b).
Can you make this to work like this?
I hope I made myself clear
I’ll check Manager upon this and I will come back to you.
The VAT verleggingsregeling is quite a complicated set of rules.
There is a big difference between whether you deliver goods or services or that you receive goods or services that are subject to the “verleggingsregeling”. At this moment Manager can not deal with this in the correct way. I don’t know exactly what you mean with left column and right column. Maybe you could post a print of the tax-report that explains probably more as well as a brief description of the “verleggings-activities”.
I assume your question about the verleggingsregeling is it not because of curiosity but a real business issue. Is that the case then I will put forward a request for a change of the software.
Thank you for your quick reply to my post.
My question is a real business case. I am an accountant and tax advisor, so I know about the “verleggingsregeling”.
One of my customers is a constructor , and he has to deal with the “verleggingsregeling”.
I will explane with an example.
Let say Constructor A is the main constructor, he is building a house. Constructor A hires Constructor B to do all the electricity in the house. Constructor A and Constructor B are both dutch.
Constructor B sends an invoice to Constructor A, but without tax. On the invoice he must put the phrase “btw (=vat) verlegd”. This is called the “verleggingsregeling”. Constructor B let Constructor A handle the taxes. In the Netherlands it’s the law for constructors in the building industry to do this.
So, my customer is Constructor A. He gets an invoice from Constructor B for lets say EUR 1000. When I put the invoice in Manager and use the buildin tax “btw verlegd 0%”, I get the following tax-report.
Nr 1: correct
Nr 2: this should be 21% of EUR 1000 = EUR 210
Nr 3: this is the sum of 1 - 4: so in this case with 1 invoice this should also be EUR 210
Nr 4: Constructor A pays the vat for Constructor B, but also gets is back. so nr 4 should also be EUR 210 (negative).
Nr 5: In total: EUR 0. He must pay EUR 210, gets back EUR 210.
Basically “verleggingsregeling” is the almost the same as category 4 in the tax-report. Only difference between 2 and 4 is that category 4 is for businesses in different countries, and category 2 is for businesses in The Netherlands. In category 2 no borders are crossed.
I hope I did a clear explain of the situation
Thanks for your explanation and posting the “Concept BTW aangifte”.
I am an accountant and tax advisor too, so I understand perfectly well what your problem is.
At his moment Manager can’t cope with this and it needs some reprogramming of this report.
The standard VAT codes are used for sales and purchase invoices. There is no split between Sales-Vat and Purchase VAT.
We are missing standard codes for BTW Verlegd 6% and BTW Verlegd 21%.
In my opinion BTW 0% Verlegd should be used for recording the sales invoice (constructor B in your example) and to show only the sales-figure at line1e.
The two new codes BTW 6% en 21% Verlegd, should be used to show the value and the tax payable at line 2 and to show the calculated VAT as refundable at line 5b. Do you agree?
I totally agree with you, that’s exactly what I mean.
I’ll send Lubos a request to implement two new standard VAT-codes and to reprogram the report the way we concluded.
What I can’t predict or promise is if and when he will grant this request.
Request for a bug-repair
A couple of month’s ago when you issued the latest version of the Dutch “Concept BTW Aangifte” I discovered that it was not 100% correct, but I didn’t report that because of the fact that it was a small bug and it had to do with the so-called “BTW-verleggingsregeling” which is a rule that applies to only a some kind of businesses. I didn’t expect that one of the Manager users had to deal with this kind of business. But I was wrong. So could you please take care of this bug.
I can best describe this with an example. Here we go:
-We need two extra Dutch VAT codes: BTW 6% verlegd and BTW 21% verlegd
Constructor A is the main constructor, he is building a house.
Constructor A hires Constructor B to do all the electricity in the house. Constructor A and Constructor B are both Dutch
The “BTW verleggingsregeling” applies which means:
Constructor B sends an invoice of let’s say € 1000,- net to Constructor A, without tax. On his invoice he must put the phrase “btw (=vat) verlegd”. He has to use the VAT-code BTW 0% verlegd for this invoice.
Constructor A has to handle the VAT-tax for Constructor B. It’s a little bit weird, but that is what law says for constructors in the Dutch building industry.
Constructor A receives the invoice from Constructor B as a purchase invoice.
For this invoice Constructor A has to use the VAT codes BTW 6% verlegd and/or BTW 21% verlegd.
Where to show things on the Concept BTW aangifte.
Only the sales value of € 1000,- must be shown on line 1e
The purchase value of € 1000,- must be shown on line 2a and the corresponding VAT of € 60 or € 210 must be shown as a tax liability in the next column of line 2a
This same VAT amount of € 60 or € 210 is reclaimable at line 5b
This mechanism is similar to the procedure when importing goods from within the EU (Rubriek 4 of the VAT-form)
In case you need any further information please don’t hesitate to contact me.
Could you check the latest version (17.1.2)? Two tax codes added and tax report adjusted.
Thanks Lubos, I checked version 17.1.2 and it works great.
I am happy to use this programm as well but I am now coping with more or less the same issue as described in this last year’s topic. I am contractor B that is sending an invoice with VAT verlegging to contracter A. At 1e in the report is should than show the amount over which VAT should be calculated and in column 2 the amount of VAT that is ‘verlegd’.
I just downloaded the latest update of Manager.io but this does not seem to be fixed in the ‘concept BTW aangifte’. The tax code I am using is ‘BTW verlegd 21%’.
Am I doing something wrong here or is this not incorporated in Manager.io?
Hi Marloes, and @Lubos, I am Dutch.
You are right and you are wrong. When you create an invoice for let’s say € 1000,- and you use the VAT code BTW 21% verlegd, your turnover of € 1000,- should appear on line 1e only. Line 2 will be used when you receive an invoice where the VAT 21% BTW Verlegd is used which is not the case. Lubos can you fix this little bug that the turnover is not shown on line 1e when BTW 21% verlegd is used. It does when the code BTW 0% verlegd has been used.
Thanks for your reply. You are right, I did also realize that later. But it would be great if the Little bug could be fixed. Fortunately other VAT reports do show the BTW verlegd 21% so it’s not a major problem for now.
The latest version should fix this issue. There is also tax code
BTW 6% verlegd. I assume this one should also show under