Reverse Charge for Construction Services : Netvisor

This guide covers how to handle the default tax processing for a customer for the reverse charge mechanism in construction services and ensure that the tax processing is correct on the sales invoice.

Note! An invoice can only have one type of tax processing at a time. If part of the sales is subject to the reverse charge mechanism and part is not, separate invoices must be made for each.

Settings behind the customer

The customer's default tax processing is set on the Edit Additional Information tab.

Select the tax processing as Domestic construction service tax processing. A suitable tax text can also be selected behind the customer. Default selections can be overridden on the invoice if desired.

To ensure the Finvoice e-invoice message generates the tax code AE, the EU standard-compliant e-invoice option must be checked, and the correct e-invoice address and operator must be added behind the customer.

Creating the invoice

When a new invoice is created for the customer, the default selection is Domestic construction service tax processing and the selected tax text. The processing can be changed if necessary. Note! The tax processing should be selected correctly first and only then fill in the line item of the invoice.

Fill in the invoice normally, the system will automatically zero out the VAT entries.

Keywords: Tax processing, Domestic construction service tax processing

Creating a new product for reverse VAT sales invoicing

If you want to track reverse VAT sales separately, it is recommended to create a separate sales account for these. The default VAT rate can be set as REVE (Reverse charge mechanism) behind the sales account. The tax amount is recorded in the VAT receivable and payable accounts and appears in the periodic tax return sections "301-303 Tax from domestic sales by tax rates" and "307 deductible tax for the period". Instructions for creating an account can be found here: Specification of accounts.

You can also create a new product, for which you set this new sales account with the correct tax processing as the default sales account. Instructions for this can be found here: Creating a new product.

This article has been translated using an AI-based translation tool. The contents or wording of these instructions may differ from those in other instructions or in the software.

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