You can handle a situation where part of the invoice is sent, for example, to an insurance company without VAT and only the VAT portion of the invoice is sent to the customer as follows.

You can open the customer details and edit the tax treatment by selecting Sales > Customers > select the customer.

For the insurance company or other party to whom a VAT-free invoice is sent, set the customer's tax treatment to "No VAT treatment." This way, no VAT entry is created from the invoice, no information is sent to the tax authorities, and the VAT code will be "- No VAT treatment."

  • Select the customer (for example, the insurance company) to whom you send the VAT-free invoice.
  • Set the customer's tax treatment to "No VAT treatment."
  • Check that the VAT code is "- No VAT treatment."

Create an invoice for the customer (insurance company or equivalent) with the VAT-free amount and send it forward through the desired channel.

  1. Create a sales invoice for the insurance company (or equivalent) with a VAT-free amount.
  2. Send the invoice forward through the desired channel.

Create a separate product for this, e.g., Insurance company's share, and assign it the desired accounting account, where the VAT code is "- No VAT treatment."

  1. Create a new product, for example named "Insurance company's share."
  2. Link the desired accounting account to the product.
  3. Set the VAT code for the product to "- No VAT treatment."

Then create an invoice for the end customer with 2 rows. The first row is the total invoice amount including VAT, e.g., 25.5% domestic sales, and this is the product being sold.

Then add a negative row to the invoice, quantity -1, and its name can be, for example, the insurance company's share, i.e., the amount that was VAT-free.

  1. Create a sales invoice for the end customer.
  2. Add the product being sold on the first row with the full invoice amount including VAT (for example, 25.5% domestic sales).
  3. Add a negative row on the second row:
    • Set the quantity to -1.
    • Use, for example, "Insurance company's share" as the row name.
    • Enter on the row the VAT-free amount that was invoiced from the insurance company.

This way, the customer will only be charged the VAT amount from the invoice.

An invoice has been sent to the customer with incorrect VAT or other incorrect information.

You can open the sales invoices and create a credit note by selecting Sales > Sales invoices > select the original invoice.

If a sales invoice has already been sent to the customer with the wrong VAT % or if VAT was completely omitted, the instruction is to create a credit note. Then agree with the customer whether this credit note will also be sent to them or not. If the credit note is not sent, it is printed locally.

  1. Select the sales invoice that was sent with incorrect information.
  2. Create a credit note from the invoice.
  3. Agree with the customer whether the credit note will be sent to them:
    • If the credit note is sent, deliver it to the customer as usual.
    • If the credit note is not sent, print it locally.

After this, the credit note is matched to the original incorrect invoice, and then a completely new invoice is created with the correct information. You can include text in the "Before invoice rows" field, for example, stating that this replaces the previously sent invoice.

  1. Match the credit note to the original incorrect invoice.
  2. Create a completely new sales invoice with the correct information.
  3. Write in the "Before invoice rows" field, for example: "This replaces the previously sent invoice."
  4. Send the new invoice to the customer.

Frequently asked questions

Question: How do I proceed when part of the invoice is sent to the insurance company without VAT and only the VAT portion to the customer?

Answer: Set the insurance company customer's tax treatment to "No VAT treatment," invoice the insurance company with a VAT-free amount, create a product "Insurance company's share" with the VAT code "- No VAT treatment," and create an invoice for the end customer with one row for the full amount including VAT and another negative row for the insurance company's VAT-free share.

Question: Why is the tax treatment "No VAT treatment" set for the insurance company customer?

Answer: This way, no VAT entry is created from the invoice, no information is sent to the tax authorities, and the VAT code will be "- No VAT treatment."

Question: How do I ensure that the end customer only pays the VAT amount?

Answer: First add the full invoice amount including VAT to the end customer's invoice and then a negative row for the insurance company's VAT-free share. This way, only the VAT amount remains payable as the final total.

Question: What should I do if an invoice has been sent to the customer with an incorrect VAT percentage or without VAT?

Answer: Create a credit note for the incorrect invoice, agree with the customer whether the credit note will be sent or printed locally, match the credit note to the original invoice, and create a new invoice with the correct information.

Question: How do I indicate that the new invoice replaces the previously sent invoice?

Answer: Write in the "Before invoice rows" field on the new invoice that the invoice replaces the previously sent invoice.

Keywords

insurance company's share, No VAT treatment, No VAT treatment, VAT-free invoice, VAT entry, credit note, incorrect VAT %, sales invoice, end customer

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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