Additional functionality of prepaid VAT
For your information, you are not prohibited from setting up and using prepayment VAT yourself. However, there are a number of different nuances associated with it, so we recommend that you ask for assistance in setting it up.
Nuances related to prepayment VAT:
- It is possible to set it up so that each prepayment (can be configured separately for both purchase and sale transactions) is automatically linked to VAT.
- By default, VAT is charged on the contact card.
- It is possible to use an order process that includes the following:
- automatically uses the prepayment when the order is invoiced;
- allows you to link the order and the invoice when importing invoices (via the API and Excel import) – at the same time, it takes into account that partial prepayment is also possible;
- it is possible to set it up so that VAT is charged on the order when the order is paid for;
- it is possible to set it up so that the receipts of the order are linked automatically even in the case of a partial payment.
- Prepayment VAT is automatically included in the VAT return.
- In order to distinguish advanced VAT, the type cell in the VAT report should be filtered. If it is not there, you need the index plugin available under additional reporting functions. See more on the additional management reporting options page. Types explained:
- Sales invoice transactions – VAT is calculated based on sales invoices. The report displays the transactions by date.
- Purchase invoice transactions – VAT is calculated based on purchase invoices. The report displays the transactions by date.
- Receipts excluding invoices – shows VAT amounts on receipts not related to invoices. Shown in the report with a positive amount. That is, if the customer paid 120 EUR and the VAT is 20%, then the report will show 120/1.2 = 100 EUR. Assuming that no other monetary transaction with VAT has been added (for example, in bank import you can select a transaction, specify an account and VAT – without linking an invoice or a contact; more necessary for withdrawals where, for example, monthly transactions paid by credit card can be automated with bank rules – without adding a separate purchase document for this), then it will show prepayment VAT.
- Payments except invoices – analogous to the “receipts except invoices” option
- Sales invoice receipts – sales invoice receipts related to VAT. Shown in the report with a negative amount. For example, if the invoice payment is 120 EUR and the VAT is 20%, then the report will show -1 * 120 / 1.2 = -100 EUR. Here, it does not matter whether the transaction was preceded by a prepayment or not – the important thing is that the receipt is related to VAT. Some other possibilities when VAT can appear on receipts of sales invoices are the following:
- Use of prepayment
- Marking an invoice as overdue
- Using a gift card
- Purchase invoice payments – analogous to the “sales invoice receipts” type
- Prepaid VAT can be set on a country-by-country basis – such that, for example, all Latvian customers get the “EU VAT services” VAT type and the Estonian customers get the 20% VAT type.
- When using a prepayment, VAT is automatically determined based on the initial prepayment.
- Whenever possible, the orders solution should be preferred when using prepayment VAT – then a document will be created which is related to the prepayment and, for example, in the 1,000 EUR report, Books will try to indicate the related document, not just the description “prepayment” or “use of prepayment”.
Implementation price: 499 EUR + VAT.