VAT requirements

Please write requirements of Your country here . Please check which are fulfilled and how it is done

Miscellaneous references

Here is the data model reference
We should use this Jira issue to federate related tasks. There are already some interesting links from there...

Common EU requirements

1. Tax Code of Seller and buyer on Invoice

Implemented see OFBIZ-362

2. Prices with VAT in webshop

Implemented but some issues OFBIZ-1086. In France this is required : you must show your prices VAT included if you are selling to public (B2C). When you sell to professionals (B2B), by usage, you show that your prices are VAT excluded.

3. Configuration of VAT GL Account

Is it done ? Should it be per rate - different accounts for collected and duty tax for each rate ?

See point 7. We need at least an incoming tax (sales) GLAccount and an outgoing tax (purchase) GLAccount.

4. Discounts applied per line

Currently OFbiz applies global discount on invoice level. This is not valid for VAT. For VAT amount for each line must be known, so discounts have to be applied per line.

5. Reporting

In some countries (Poland, Italy, France, Germany, more ?) there is need for monthly or quaterly VAT report with all sales and purchases. Reports can be separated per "Registry". Each registry contains separate type of transactions. E.G EU sales, EU buys, Non EU Buys, Non EU Sells.

6. Dates

There is not always direct connection between invoice date and VAT. E.g in Poland if purchase invoice is received more than 2 months from purchase it will not decrease amount of VAT to be paid. Same in France, must be the same month, but you may regularise in a delay of 2 years.

Some invoices can be not valid.

For Export invoice there can be requirement for document which will confirm that goods has been exported (to apply 0% VAT)

7. Purchase order VAT

I will implement this shortly the following way: (have a customer who wants it)

1. add a second glAccountId for outgoing tax to the
TaxAuthorityGlAccount.
2. adjust the programs to calculate the vat (sales tax) on purchase
orders the same way as sales orders, but use for the productstoreId a
blank entry.

8. Shipment cost VAT

Shipment cost should be VAT aware (amounts should be splitted for netto + VAT on invoices). There is a field for that in Tax Autorithies/Product Rate : TaxAuthorityRateProduct.taxShipping. But shipping amounts are no VAT splitted.

9. Rounding

10. Invoices requirements

We should research the common ground for invoices and POS receipts

UK requirements (from this interesting thread. We should check if OFBiz is OK, I guess so but maybe some quirks)
VAT invoices must show:

an identifying number;
your name, address and VAT registration number;
the time of supply (tax point);
date of issue (if different to the time of supply);
your customer's name (or trading name) and address;
the type of supply (see 16.3.2 below); and
a description which identifies the goods or services supplied.

For each description, you must show:

the quantity of goods or extent of the services;
the charge made, excluding VAT;
the rate of VAT;
the total charge made, excluding VAT;
the rate of any cash discount offered;
each rate of VAT charged and the amount of VAT charged at each rate and shown in sterling; and
the total amount of VAT charged, shown in sterling.
It seems that for most UE coutries (at least UK, France and Italy) it's not mandatory to calculate VAT for each item but for each existing rate in the invoice.

France requirements (from Wikipedia in french)

An unique bill number based on a chronological and continuous sequence,
the complete names of salesman and customer with respective addresses,
the individual number of identification to the VAT of the salesman and customer (the number of VAT of the customer remains optional for operations realised in France),
the date back to delivery or bill transmission.

On each invoice line you must show

The realisation date of the sale/service or deposit payment,
for each of the delivered goods or services: quantity, name, VAT excluded unitary price, VAT rate or, if needed, exemption,
all reductions, handing-over, rebates or discount obtained and calculable at the time of the operation and directly linked to this operation.

Finally, must be shown

The tax amount to pay and, by rate, VAT excluded total and corresponding tax (If the liable is brought to bill another VAT that the French VAT, she/he must specify very clearly that it is a tax of such or such foreign country).
If need be, a mention indicating that the operation benefits from a measure of exemption (with law reference), or of an auto-liquidation or profitable margin system.
The date at which the payment must take place,
the rate of the payable penalties begining the day following the date at which the payment must take place,
discount conditions.

Requirements by region

France VAT link there are many other languages links from this link, very interesting
Eu VAT specificities change language if you need

requirement	region	needed?
unique bill number based on a chronological and continuous sequence	France	yes
	Germany	yes
	Spain	yes
Discounts applied per line
Ofbiz supports invoice level discounts. This is not valid for VAT. For VAT, amount for each line must be known, so discounts have to be recalculated for each line.	Poland	yes
	Germany	yes
	France	yes
I.e. there can be invoices with different VAT rates per line.	Spain	yes
Rounding
Important: rounding may only take place one time per VAT rate (after all calc. VAT amounts are summed up for that rate)	Germany	yes
	France	yes
	EU	yes?
Exemption
Some products can have different tax rate when selling to different type of customer. E.g. In Poland flat/house renting is 0% for individual customer but 22% when renting for company. This is usually handled by creating different products for different VAT rates.
Similar situtation in Germany: FastFood restaurants: take-a-way food has 7%, stay-here is 19%, usually handled via different products, too.
Same in France : only rates change (5.5% and 19.6%) (I wonder why they did not choose 5.55468 and 19.65548754, hey it's France ;o)
Has different VAT rates, for different type of goods
Official EU document Wikipedia (could be more updated than EU document)	EU	yes
0%, 7%, 19%	Germany	yes
2.1%, 5.5% 19.6% (there is no 0% rate in France only conditionnal exemption)	France	yes
0%, 4%, 7%, 16%	Spain	yes
Apply VAT for sales in INTERNAL_ORGANIZATION country Official EU document
	EU	yes
Apply VAT for sales outside EU
Buyer may get VAT back from German Customs Auth. when he proves, that goods leave Germany (or EU?)	Germany	yes
There are some exceptions with DOM-TOM (no metropolitan territories) and electricity. See http://fr.wikipedia.org/wiki/Taxe_sur_la_valeur_ajout%C3%A9e#Territorialit.C3.A9 for details, notably about services which can be complex	France	no: goods complex : services
	Poland	yes
	Spain	no
Apply VAT for sales outside INTERNAL_ORGANIZATION country && inside EU && with valid VAT ID (B2B)
INTERNAL_ORGANIZATION may have to proof that goods left Germany (for Tax Auth.)	Germany	no
Found no such requirement in France, but sounds weird there is not a such need	France	no
In Poland there is also need for spedition document to have proof that goods left Poland	Poland	no
	Spain	no
Apply VAT for sales outside INTERNAL_ORGANIZATION country && inside EU && without valid VAT ID (B2C)
	Germany	yes
	France	yes
	Poland	yes
	Spain	yes
Apply VAT for purchases like sales
	EU	yes

Common South America requirements

1. VAT withholding

In Colombia applies Withholding of VAT. It is called "retention at the source". Part of calculated VAT adjustments are not paid(but retained) by the buyer.

1.1. Different % of retention

Companies in Colombia are divided in classifications according to the social activity of the company.
The value of the retention at source depends on the relationship between companies(payee and payer).

1.2. Order and Invoice amounts

The order and invoice total amounts should include the full amount of the tax, not only the part that issuer will pay to the tax authority. The invoice also should contain information about the amount of the retained tax amounts.

1.3. GL posting

Withholding amounts should be posted to separate GL account.