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Invoice Total no longer includes VAT!
Any new invoice I create no longer includes VAT!
The Net Total and VAT totals are missing from the invoice entirely, leaving only the GBP Total.
Has something changed or am I missing something obvious here?
The Net Total and VAT totals are missing from the invoice entirely, leaving only the GBP Total.
Has something changed or am I missing something obvious here?
I’m confused
3
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Inappropriate?Hi Michael
Is the client you're sending this invoice to outside of the UK? -
Inappropriate?Yes. Now I see what's going on.
I have a client here in the U.K. who have based the operation who handle their supplier invoices in the Netherlands. They have a rigid set of requirements for data on the invoice, otherwise they refuse to process them.
I changed the address on the invoice to reflect these requirements. Since it's in the Netherlands, FreeAgent stopped adding the VAT on, which makes sense.
I've changed the country back to the UK and jammed 'The Netherlands' into one of the address fields, which means I satisfy their addressing requirement and I still see the UK VAT.
Unfortunately, this switches off the IBAN/BIC codes on the invoice, which are also a requirement!
I'm pasting these into the comment field as a work-around for now. The simplest solution (for me, at least!) is a toggle on the Invoice options that lets me include the IBAN/BIC codes on the invoice.
Regards,
MichaelM
I’m pixelated
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Inappropriate?I'm based in Denmark. I have to charge VAT to all EU customers that aren't VAT registered themselves. If they are VAT registered I just need to include their VAT number and mine on my invoices.
I hear this is pretty standard stuff - can't we incorporate this into Freeform?
Cheers
Jim
I’m hopeful
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Inappropriate?Jim P
Our understanding is based on UK VAT rules - no guarantees of course that Denmark is the same but we believe EU VAT rules are harmonised.
Based on this, we don't think you need to charge VAT on services which are supplied to other EU countries as long as they are businesses. See this article for the UK rules.
One way of showing you've identified that client as a business is to display their VAT number on your invoice too, and we have a box you can enter that into for your clients for that very purpose. But their VAT registration status is not strictly the requirement.
These 'place of supply' rules are complicated, though, and we agree we should have a way of overriding our assumptions if you need to.
And of course we may just be plain wrong and would appreciate being set straight!
I’m confident we'll get there in the end.
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This solves the problem
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I think that the VAT status of people in the EU to whom you do not charge VAT **is** important. There's a VAT form called EC Sales List - ECSL - on which you have to report all such "non-VAT-ed" sales - this must have the full VAT number of the organisation and the total value of sales to that organisation for the quarter. They get quite sniffy if you don't fill in a valid VAT number. Oh, it has to tie up with a box on VAT100 too.
All the above for goods delivered to EU countries other than the UK and for services "supplied" in the EU country (not UK).
Just my 2p. Alan Knight -
Inappropriate?Commenting on Ed Molyneux's reply.
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Inappropriate?My understandign is that you do not charge VAT to other EC countries PROVIDED you have their VAT number on an invoice. Otherwise its business as usual.
Is there a simple VAT report anywhere in the system though? -
Inappropriate?I request Freeagent to add the option of charging VAT to companies in other EU countries. Our policy is to charge VAT if we do not have their VAT number because otherwise you get probelms with HMRC. So whatever the rules say, IO would like option (which may include advisory note or pop up to assist others) please
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Inappropriate?Stefan,
Your request is heard loud and clear - we're working on a way of allowing you to override our assumption and charge VAT to any of your clients.
A workround in the (short) interim is to set the client country to UK (which is not printed on the invoice) but include the country name after the postcode.
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This solves the problem
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Hi Ed,
I have a UK Ltd company and a French trading address. I am invoicing with the trading address on the header (NOT the registered address) and Freeagent Central removes the VAT. This is wrong. I'm still a UK company, with a UK VAT number and a UK company number entered in the system. The software should not remove the VAT simply because my TRADING address is outside the UK. This feels like a bug, not a feature. Surely if I provide a valid UK VAT registration number, the system should add VAT, regardless of the trading address on the invoice. The trading address is irrelevant!
Please advise... or better still, put it in the queue to be fixed! For now my invoices will need to carry my REGISTERED address, which is not desired. =( -
Greg
You can adjust the way VAT is charged at the Contact level. If you edit the contact in question, you'll see a 'Charge VAT' option under Invoicing Options. If you select 'Always' then VAT will be applied to all Draft invoices for that Contact. -
Hi Olly,
That makes sense, and shows me a workaround, but I think you misunderstand the issue. My customers are all in the UK and so is my business. The only thing is MY trading address (not my customer's) is in France. What you're telling me is as though my contacts are all outside the UK and I want to charge them VAT anyway, but in actual fact everyone is UK-based.
Using your workaround, for every contact I have to go and set VAT charging to "Always". What I'm saying is if I provide a UK VAT number and a UK company number, it should automatically charge my UK-based customers VAT, regardless of the geographical location of my trading address, which in this case happens to be France, because my trading address is not relevant when it comes to UK VAT.
So, problem with the system is simple - it should not stop charging VAT simply because invoicING company has a non-UK trading address. This is not correct. It shouldn't care where the invoicING company is based, as long as a valid UK company number and VAT number are provided (as they are). I shouldn't need to have to go and edit all my contacts (but I will now, to get around the problem for now).
Hope that makes sense! =) -
Hi Greg
We do understand the issue. We have had other customers asking us to support different registered address and trading address, so it's definitely on our roadmap -- we just can't say exactly when we'll be able to add support for it since there are a lot of highly-requested features which will probably take priority.
Hope you don't mind sticking with the workaround for now! -
Yes, workaround is fine for now! Thanks for coming back so quickly. Good to know you guys are on the ball. =)
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