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B2B Invoices Invoices are Incorrect and violate .eu Regulations!


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Currently EVERY INVOICE generated to a VAT-Registered Client with (with regard to electronically provided services) in another .eu country that gets issued via blesta violates .eu Accounting/Invoicing rules/Directives!

 

Background:

In .EU there is a "place of supply" rule for electronic/digital provided services.
For End-Users this is done via the VAT-MOSS scheme.

Invoices between two .EU Businesses however use the "reverse charge" mechanism.
This means that an invoice without VAT is being issued with a note that the recipient
of the invoice is responsible for the tax owed for the transaction.

a) For this both the Tax ID of the Issuer as well as well as Customers need to be on the invoice.
b) No Tax is shown on the Invoice (see https://www.blesta.com/forums/index.php?/topic/15184-invoice-shows-wrong-tax-percentage/ )
c) Text: Reverse Charge Procedure: The Customer is Liable for the Tax.
 

See for further reference: https://requests.blesta.com/topic/fix-reverse-charge-support-eu

Issue:

 

Currently Blesta Creates invoices in a way, where they are incorrect for B2B Transactions, due to the criteria specified above.

Customer Impact: Generating False/Incorrect Invoices can lead to additional tax liabilities, and fines for violating laws and invoice directives,...

Solution:

=> For vat exempt customes,  hide/dont add the tax line to the invoice.
=> as a quick fix, Blesta users may a line similar to:
"EU-Business Customers w. VAT-ID:  Reverse-charge mechanism is used: The tax liability transfers to the recipient of services."

 


 

 

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