Vat information on sales invoice

In a discussion with another user and after reading article 53(10), specifically points 7-9, of the VAT law it seems Manager doesn’t generate by default the proper format for VAT invoices in Macedonia.

I would like to consider to make a custom theme for this, but before I start doing that, can someone please clarify:

  1. Is it possible to have tax code per line item even when there is only just one item on the invoice?
  2. Is it possible to have tax amount per line item even when there is only just one item on the invoice?
  3. Is it possible to have the sub total divided by tax code? (I think this is asked and answered, but I’m writing it again just so we can keep track of the discussion.)
  4. Is it possible to have a label saying “No tax” on line items where there is no applied tax code (instead of the - that is shown by default)?

Pinging @MarV so he can follow the discussion.

The answer to all your questions are - currently not possible.
However, before going down the path of a custom theme I would take copies of the current Manager style invoices to an accountant or the tax office for review. While the tax act maybe quite prescriptive, frequently, as long as the required data is clearly presented, albeit in a different format, then that is acceptable.

Not possible even with a custom theme?

I cannot personally see a way to do these things with a custom theme. You would need to modify the underlying code of the program that, for example, suppresses zero amounts, eliminates columns without discrete entries, and produces totals. This code is not exposed in themes.

The only thing you might do is choose one of the 0% tax codes that are built in to show for exempt items. That would display under any theme and trigger separate line by line identification of tax codes for other entries that all use your basic VAT code. Of course, that would only apply in limited circumstances. And all it would accomplish is replacing the hyphen with 0%.

You would need to modify the underlying code of the program that, for example, suppresses zero amounts, eliminates columns without discrete entries, and produces totals. This code is not exposed in themes.

This can be easily accomplished with simple on/off switch in settings. For ex. Always Show VAT% on Line, Show subtotals on VAT, etc… So you not imposing anything to users, but leaving a choice. Data is already in program, as we must write them on separate income accounts as different income by VAT%.

And all it would accomplish is replacing the hyphen with 0%.

It is acceptable to show 0% in place of NO VAT.
I personally took couple of invoices today in local tax office and ask for opinion from 2 different officers. Both have same reply.

  1. Tax must be stated per line, no matter if it is only one line, no matter if it is 100 lines with same %.
  2. Tax base subtotals must be divided bu Tax % in case of multiple tax. Only VAT % subtotals is not enough.

@lubos My personal though is that exposing more variables and data to themes doesn’t mean that it must be used, or that every user will used. It could be leaved to user own preference. Just how would I do it.

So I was just wondering about this: I thought it is not likely that we have a VAT law different from the rest of the world (when in fact laws here usually are translated from established laws in developed countries).

And it seems that the Australian tax law has the same requirement as far as I understand it about tax amount per line:

I had no intention of specifically searching for Australian laws, but this is what showed on Google, and it seems relevant enough since Manager is being developed in Australia.

@novica, your link is to a draft ruling from several years ago. Actual requirements are here: https://www.ato.gov.au/Business/GST/Issuing-tax-invoices/. The final version only requires indication of the extent to which a supply is taxable, which Manager does. This is the more common requirement in most jurisdictions. Of course, a presentation of line by line tax amounts could also meet the requirement.

OK @Tut apologies. I stand corrected as far as Australia goes. :slight_smile:

Nevertheless, in our Macedonian VAT law, and Tax Office requirements and interpretation as I stated above this requirements is a must:

  1. Tax must be stated per line, no matter if it is only one line, no matter if it is 100 lines with same %.
  2. Tax base subtotals must be divided bu Tax % in case of multiple tax. Only VAT % subtotals is not enough.

I want to revisit this topic because I think Manager needs more flexibility how invoices should be presented. Custom themes are not solution to meet legal requirements. That should be core feature.

I’d challenge this and say that if invoice has one line, then tax doesn’t have to be shown on that line since any tax visible on invoice is on that line. It cannot be on anything else.

I doubt any tax authority in the word would insist on particular presentation like Tax amount must be horizontally aligned with Net Amount.

Except double-entry accounting systems do not calculate tax like that. Tax amount is calculated on each line seperately, rounded and then added up.

From what I can see, we need to add checkbox so Tax amount can be shown on each line item.

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Generally I agree with this. However, it is interpreted here that it should.

Tax amount is calculated on each line seperately, rounded and then added up.

This is not about calculation but about presentation.

Here is a good example of how an invoice should look with these fields. This is field 5.

That being said there are definitely different looking invoices, but they all seem to have these features.

Example: this is telecom operator invoiceScreenshot_20200905_073556

It has both per line information and the subtotals below (вкупно фактурирано in this case).

I can probably find other examples.

If we get close to this it will be awesome.

I have nothing to add more than @novica already said. I could only add some more examples:

And the closest I managed to get there through enormous theme modification and calculations inside
With one VAT code


It is preaty good but involves as I said to much hack, that could be changed in future exposed variables,
But here is with multiple VAT codes. Problem is that 0% VAT is nowhere exposed and I cannot properly separate in totals. So here is test invoice vith all VAT codes

I would also like to have some oportunity to generate Amounts in words in local language, but :slight_smile:

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That limitation originates with the software command, which returns the result in English. Manager’s translations are based on a lookup table of terms in the program.

There are solutions possibilities. For example lookup table, for numbers, currencies etc… We already have translations, maybe just adding lookup for that command. Maybe a liquid filter of some sort, I haven’t thought it a lot, but there must be possibilities.

Number translations are not that straight forward. Many languages have their unique number system and on top of that there might be lots of exceptions.

I think that might require users to contribute with code and not just translations.

It was just an idea. And yes if there is possibility to add code to do that, it is another solution, so users could contribute.
IN the moment no one except English speaking users can use this function.

The latest version (20.8.98) will show Tax Amount column if checkbox Amounts are tax inclusive is unchecked. This works only on receipts and payments. But since receipts and payments work almost the same as invoices, you can have a look how it is implemented.

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I think that there should be another column before the last 2 columns with heading “Amount excl.tax” and these last three columns all have totals. Also rename last column to “Amount incl.tax”.

OK, it shows Tax Amount, but not much help at the moment. 3 things I will comment:

  1. If we use new feature there are no subtotals at the end, just one TOTAL.
    NEW


    OLD

  2. As I understand and worked, checkbox Amounts are tax inclusive til this change, has nothing to do with real VAT calculations. This is how we used it. It depends how we like to choose to enter data (with or without tax) and according to TAX code chosen manager calculates real unit price. This doesn’t need to be changed because it will make changes to already entered documents. Maybe it will be better to have a new checkbox Show Tax Amount as Column (or similar).

  3. Here is by our law how should one invoice look like (closest I managed to do with custom theme, calculations inside, and heavy customization and looping through tables exposed inside). I translated to English so you could get real feeling what have we asked for with @novica. Please Take a look at lines items, but also Totals section.
    Preview Screen (Unit Price = E.M. My custom field for defining line item Unit Names)


    Edit Screen

Please feel free to comment, and I will also share with you the theme if needed so you could see what I was doing. Also When Invoice has only one VAT %, some fields are missing, so the whole thing is breaking apart, so I have 2 wersions of theme (for 1 VAT code, and for Multiple VAT codes). I am in the process of putting all in one theme with lots and lots of IF_THENs and Loops :slight_smile:
Maybe the best will be if we have all amounts and columns exposed in custom forms (Unit Amount, Vat %, Vat Amount, Unit with VAT, Line Totals With and without Tax, etc…, Also totals with and without VAT per VAT Code, and then we can choose in custom theme what we want to show. That way maybe default themes can stay the same, and only users that need this kind of display with code custom themes as they like it. So the exposed data should be always the same (as much as possible), always same structure no matter how many VAT codes or line numbers invoice has, and users should build there invoice as they need. Also column order change now is very difficult (I have done it, but is not easy).
Maybe some invoice builder (visual or something like custom reports), just an idea, a long-shot one :wink:

This is not true. Your NEW example either has no tax codes applied or is not a receipt or payment.

This is also not true. Manager calculated the tax amount regardless of whether the transaction was tax-inclusive or tax-exclusive. The difference was in how the tax was calculated. The method of calculation has not changed. Only the display has changed. See https://www.manager.io/guides/9502 for information on the tax calculation methods.

The change only applies to receipts and payments. It has not been implemented on sales invoices. Perhaps it will be, since the developer left the topic in the ideas category.