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How i can make margin/marge invoice


#1

Hello, like in topic.
I need to make margin invoice but i cant find an option in manager (desktop) to make it.
Can somebody help me with it?


#2

What do you mean by a margin invoice? Describe your use case.


#3

Invoice where i don’t put tax. And is tax free the paying of tax is from difference of buy price and sell price (income on product-margin/marge).

Example:

Smartphone (2cond hand) buyed for 60eu
Sell price 80eu

Difference 20eu is taxed (income on sell-margin)

In invoice must be tax option empty without %


#4

Normally, VAT works by offsetting VAT on sales against VAT on purchases. You cannot just create a sales invoice for only your markup. I don’t know the specific requirements for taxation on secondhand purchases and sales in your jurisdiction, but I suspect there is a regulation governing how you account for input VAT when you purchase a used phone from someone.


#5

If you are operating VAT on a margin basis, then there is no allowance for input VAT.

In the example given
Sales invoice should show € 80 which includes the margin of € 20

The € 20 is tax inclusive ie VAT @ 23% say, is then the margin is € 16.26 and VAT @ 23% of this is due or € 3.74

At least, that how it operates in Ireland and I suspect that’s pretty much the rule across the EU


#6

Joe You have right that is that what i mean. Thats why i ask about that how to make invoice in manager like that because on invoice is no tax (and must be no field about the tax only information that is margin invoice). Be me is 21% VAT (Netherlands is 21% VAT on margin basis by periodical VAT payment to tax office).

Tut i know how make purchase invoice of a used phone (its 0% VAT).

I need sell invoice for margin basis needs any solution for me about that?


#7

I wait for answer for solution of that problem


#8

With Manager there is no Sales Invoice which has the tax in the background, not displayed.

However, one way to resolve your issue using Manager, if you are using Inventory Items, would be to use custom Income & Expense accounts.

First, you would create Chart of Accounts just for these transactions which I will call Second Hand Sales & Costs and under the Inventory Items set them as Custom Income & Expenses.
COA 0000000%20Bug%202 & Inventory0000000%20Bug%202a

At the end of the taxation period, let say quarterly, you would create a Sales Invoice for the total of the Margin income for that period using Customer - VAT Margin which would be self contra (note the negative line) and with the Tax inclusive tick box ticked. (example using Joe91 figures)

Giving the Summary Tab as

You could use instead on the Sales Invoice a dedicate VAT Margin Tax account.


#9

Ok but problem begin on the moment where for example i must sell second hand mobile phone with margin invoice (where i must give it for client) the invoice must follow taxation rules so must be without tax on it and using that way what you write the numbers of invoices will be not follow like shuld be.

So in that place i’m stuck.