Taking into account the VAT increase in the invoicing process using Invantive

As described in a different contribution on VAT the VAT percentage changes on 1 October 2012 from 19% to 21%. If you are invoicing work orders, real estate, hours or products using Invantive Estate or Invantive Vision, then you will have to take this into account. This contribution describes how VAT works in the invoicing process. On the basis of this you can adjust the arrangement of the invoicing process.

If you are invoicing using Invantive Estate or Invantive Vision, then this usually happens in two steps after setting the work orders, projects or deliveries as invoiceable:

  • Invoicing process: besides other things, the invoicing process is where the price is determined. End result of the invoicing process is a concept invoicing line.
  • Importing in accounting: in the importing concept invoice lines are combined into invoices in your accounting. This could be Twinfield, Reeleezee, Exact Online, Exact Globe, ENIAC, Unit4 Multivers or a different accounting package.

These two steps are described below.

VAT increase and VAT provision in the invoicing process

In the invoicing process the applied VAT is determined per concept invoice line. The VAT code that comes up first in the list below is used:

  • A customer that specifically has a VAT code. This is often used for example customers abroad where the VAT can be shifted.
  • A process unit that specifically has a different VAT code. This is often used to for example invoice parts of the term schedule of a building with or without VAT because the products can only be taxed partially with VAT for example.
  • A unit that specifically has a VAT code. This is often used in the case of the same product (for example “Ford Focus”) to be able to supply some serial numbers / license numbers as margin car and some as VAT car.
  • A product that specifically has a VAT code. This is used if when most products are known by the same VAT code it is only needed to specify the exceptions to the VAT code.
  • The system-wide standard VAT code.

Within Invantive Estate and Invantive Vision VAT codes are usually used that either refer to the appropriate percentage, for example “19%”, or the methodology, for example “High”.

If you make use of a coding on the basis of the applied percentage, then you can consider to adjust the code per 1 October to for example “21%” and to also change the appropriate percentage in the screen “VAT Codes”. If you use “High” for example, than all you have to do is adjust the VAT percentage in the screen “VAT Codes”.

Since there is no change in what percentage applies to which product after the implementation of the VAT increase (6% remains 6% and 19% always becomes 21%), that is a relatively small effort.

Yet you still need to take into account the VAT percentage of deliveries that occur around 1 October. In Increase of the VAT - the rules you can see examples where the delivery of the article is treated differently before or after 1 October. It does not matter when you send the invoice. Within the Invantive software you can lock down for deliveries when a product was delivered, but this only has impact on the price, not on the VAT percentage.

With this VAT change it is therefore wise to:

  • Wrap up as many deliveries of articles and services before 1 October as possible. You will please your (private) customer with a lower price and you have to correct a smaller amount of invoices.
  • Avoid invoicing in advance of articles and services as much as possible. If you still wish to invoice in advance, then use a percentage of 21% if you expect that the delivery will take place on or after October 1. In this way you will have to correct less afterwards.
  • If you work with combined notes for the next period of a subscription and the usage afterwards, then take advantage of the possibility to use a different VAT code per process unit. You can also adjust this in your template for the invoicing; enter with the subscription for example the VAT code “21&” and use your normal VAT code (“19%” or “High”) until 1 October. After 1 October you edit your template again,
  • Check all invoices as soon as you have imported them in the accounting for the appropriate VAT percentage and correct it if necessary.

VAT increase and the importing in the accounting

In the concept invoice lines you will see all the invoiced that still need to be send after all amounts and VAT codes have been determined by the invoicing process. Depending on the chosen accounting package you then subsequently import the concept invoices. Even after the importing you can still edit the invoices in the accounting package. The adjusted amounts and invoice lines return again through another link as invoice lines. These invoice lines reflect the realization numbers within a project.

In the list below you can read for each accounting package in which way you process the VAT code from the concept invoice line in your accounting package:

  • Exact Online: in Exact Online the VAT code from the concept invoice line is adopted. The code of your VAT percentage in Exact Online needs to be 100% identical to the code of the VAT in Invantive.
  • Exact Globe: in Exact Globe the VAT code from the concept invoice line is adopted. The code of your VAT percentage in Exact Globe needs to be 100% identical to the code of the VAT in Invantive.
  • Reeleezee: in Reeleezee the VAT code from the concept invoice line is adopted. The code of your VAT percentage in Reeleezee needs to be 100% identical to the code of the VAT in Invantive.
  • Twinfield: in Twinfield the VAT code from the concept invoice line is adopted. The code of your VAT percentage in Twinfield needs to be 100% identical to the code of the VAT in Invantive.
  • Unit4 Multivers: in Unit4 Multivers the VAT code from the concept invoice line is adopted. The code of your VAT percentage in Reeleezee needs to be 100% identical to the code of the VAT in Invantive.
  • ENIAC: in ENIAC the VAT code from the concept invoice line is adopted, but you can apply a calculation on it. The code of your VAT percentage in ENIAC does not need to be identical to the code of the VAT in Invantive.
  • King: in King the VAT code from the concept invoice line is not used. You need to enter the correct VAT code yourself in King.