How to handle reverse charged VAT

@Bogey, I’ve created random business which is using all of your proposed tax codes, see tax summary screenshot:

Using data from this report, how would you fill each field on VAT return? I’ll just follow your instructions.

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I’m referring to @tomasz image with the colors.

  • Personally I’ve never had to deal with 1c and 2a.
  • 1d is personal use (for example using phone, food, car for personal use). I don’t know if that should come out of the journal entries or if it’s something that could be entered afterwards separately.
  • 5a is a total of all red boxes, and indeed it does include the red boxes 4a and 4b (so the sum total of these is 0).
  • 5d is a calculated according to a formula defined by the Dutch tax office.

edit:

  • I think that 2a (BTW verlegd) should have two percentages too: 6% and 21%.
  • 1c requires the option to change the percentage (or the field in the journal so one can correct it manually)
  • 1d should link to a capital account.

I hope @tomasz and @janpieterz can add there comments too?

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Hi @lubos and @Bogey,

I would fill in the fields on the VAT return the same way @Bogey did.

To elaborate on field 5a. 5a is not only the sum of the red boxes of fields 4a and 4b, but also including the purple boxes of fields 1a-e and the red box of field 2a.

I also did not have to deal with fields 1c and 2a. 1c is probably used very rare and is only applicable if you have a sport or business canteen. In this case the VAT charged is 11,5% in the former case and 6% in the latter case.

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Hi @lubos,

I just saw the new VAT Return report for NL. It looks awesome. Thank you very much for implementing this.

I have commented on field 5a in a previous reply: 5a should be the sum of the fields 1a-e, 2a, and 4-b (column omzetbelasting). Then field 5c is equal to 5a - 5b. The amount to be paid (Totaal te betalen) is equal to 5c - 5d.

Regarding field 5d, how is the amount for this field computed? Or how can we enter an amount for this field in Manager? Normally, I only fill in this field in the last VAT return report of a year. If you’d like a formula for this field, I can look this up for you.

Edit:
I have one more question. What do I have to do in Manager to have amounts appear in the fields 1e, 2a, 3a-c, and 4a-b?

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Just a few comments here:
5a is the sum of 1 to 4 of the RIGHT columm (the one with the VAT amounts).
5c is indeed the amount of VAT to be paid, but could also be the amount to get returned (in case of a negative number).

@tomasz "I have one more question. What do I have to do in Manager to have amounts appear in the fields 1e, 2a, 3a-c, and 4a-b?"
That hasn’t been implemented yet - the percentages have to be added first.

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Awesome, good to see some progress on here, thanks @lubos for the work so far.
I’m looking forward to having the percentages in there as well.

Just for my understanding, @Bogey and @tomasz, I thought we didn’t need to specify a percentage when we ‘verleg’/transfer the VAT to a customer of us outside the Netherlands, only when we receive? Maybe I’m missing that, but where do we see that?

@lubos as far as I know the whole ‘reverse charging’ is something that is applicable for all countries in the EU, not just The Netherlands. It might be worth asking a couple of people you perhaps know from other countries into this thread to see how it’s implemented there. Might save you from writing a report for every country while keeping everyone happy.

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[quote=“janpieterz, post:26, topic:1254”]
Just for my understanding, @Bogey and @tomasz, I thought we didn’t need to specify a percentage when we ‘verleg’/transfer the VAT to a customer of us outside the Netherlands, only when we receive? Maybe I’m missing that, but where do we see that?
[/quote]Field 1e of the VAT declaration form (BTW aangiftebiljet) is intended when we as supplier/seller transfer/‘verleggen’ the VAT to our clients/buyers. The invoice must state that the VAT has been transferred.
Note that the same field 1e is also for services/products that is taxed with 0% (i.o.w. not taxed), services like education.
So field 1e is the summary of the totals of two tax codes: taxes transferred by us and 0% tax.
It’s not really necessary to implement two different tax codes. We could still use 1 tax code (of 0%). Do remember though to add a note on the invoice (you could do that for example by adding ‘btw verlegd’ to the product description).

Section 2 is, as you stated, used in cases where a domestic (in this case Dutch) supplier transferred VAT to you. This could be either the high or low percentage (21% or 6%) depending on the type of service/product sold.

I hope this helps?

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Hi,

We rent a building space from a company located in Germany. They send us an invoice without VAT because the VAT is tranferred/‘verlegd’ to me. So a foreign EU supplier transferred VAT of 21%. (4b)

Does anbody know how to enter this into manager knowing we can also substract this amount in the column pretaxed ‘Voorbelasting’ (5b), and bear in mind the small-companies-arrangement and transferral (‘kleinondernemersregeling en verlegging’ Dutch example)

Thanks

Thanks, your example helped me a lot.

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@lubos can you implement the feauture that enables us to get the amounts appear in the fields 2a, 3a-c, and 4a-b? Also 5b needs some changes if implemented correctly.

@yorricknl, go to About Manager and then click Crowdsourcing link (I have to think a better place for this).

Anyway, the idea is that I will let community to design these country-specific reports so I wouldn’t be a bottleneck.

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Have you created reverse charged tax codes?
Could you please advise by when we can have these inbuilt codes?