Taxes and surcharges on invoices
When creating a sales invoice, the supplier must ensure that correct tax percentage and tax category is used. BNP has EU/EEA tax categories and validation rules implemented. Ensuring that mandatory information is provided on invoices for each tax category. However, regulations vary per country and it is the supplier's responsibility to create invoices that are compliant with the company’s tax country.
Suppliers can also add surcharges to the invoice lines. Surcharge types and net price can also be configured upfront by the customer. If customer has not specified surcharges, then standard surcharge types are available for the supplier.
Invoice tax and tax categories
When a supplier creates an invoice from a purchase order, the item taxes and tax categories are automatically copied from the order lines to the invoice lines. If a sales invoice is created by using the template, user must insert the correct tax percentage and tax category. Tax percentage is only defined in the invoice lines and automatically grouped (per percentage) and calculated in the invoice totals.
Add invoice line item taxes as follows:
When creating a sales invoice, go section Line Item List.
Fill in line item mandatory fields: Item ID, Item Description, Quantity and Unit Net Price.
Add VAT %
Select correct Tax Category from the list. Default selection is Standard rate. You can find description of each tax category from https://opuscapita.atlassian.net/wiki/spaces/HTUCSP/pages/12605489162/Taxes+and+surcharges+on+invoices#Supported-tax-categories.
In case you are not VAT registered and the item is not taxable, leave the VAT % field empty and select tax category is Services outside scope of tax.
In case 0% VAT is applied in the item line:
Tax exemption reason field is automatically populated with the tax category name.
If you want give additional information, you can add it to the Comment field.
Make sure that different tax categories with 0% VAT are not used in one invoice.
In case 0% VAT is applied and invoiced item supplied inside EU/EEA, you much fill in County of delivery.
Press Save to save a draft or Send to the customer.
Note: The application will notify if you have made an incorrect tax category and/or VAT% selection. For example if you have selected a Standard rate tax category and tax percentage is 0%, following error is displayed:
Supported tax categories
Below list contains the tax categories supported in BNP sales invoice service. Each tax category has specific validation rules, that the seller must comply when saving and sending an invoice. Code column contains the corresponding Peppol code in UNCL5305 standard.
Tax category name | Code | Description and requirements | Tax % value | VAT-ID required |
|---|---|---|---|---|
Standard rate | S | Invoice has a VAT percentage higher than 0%. Standard rate is the default category when creating a new sales invoice.
| Higher than 0% |
|
Zero rated goods | Z | Invoice item has 0% tax according to the local legislation.
| 0% |
|
Exempt from tax | E | Seller or invoice items are not applicable for tax.
| 0% |
|
VAT reverse charge | AE | Standard VAT rate is levied from the invoicee (customer).
| 0% |
|
Services outside scope of tax | O | Taxes are not applicable to the services.
| Must be empty | Not required |
VAT exempt for export outside of EU | G | Invoice item is free export and taxes are not charged.
| 0% |
|
VAT exempt for supply inside of EEA | K | Invoice item is VAT exempt due to an intra-community supply in the European Economic Area.
| 0% |
|
Surcharges
Purchase order or invoice surcharges are supplier added costs to the document.
When a supplier creates an invoice from a purchase order, the the surcharges are copied to the invoice. Surcharges can be added only to an order if the customer has configured the surcharges in this company settings.