How does the interface work in connection with reverse charge and EU purchase invoices?

The reverse charge procedure is a reversal of the tax liability: in this case, the recipient of the service and not the company providing the service must pay the VAT. Only the net payment is therefore invoiced on the invoice.

This means that when the invoice is recognized in edoc invoice pre-processes, only the net amount is recognized and there is a tax percentage of 0%.

In connection with the IGF software, tax keys are always entered with the tax percentage that must be paid. There is an indicator that is used to recognize that the tax key is a reverse charge tax key.

When configuring the master data imports in edoc invoice, you must therefore adjust the tax percentage of reverse charge tax keys to 0%. By adjusting the tax percentage to 0%, it is possible to select the tax keys when assigning an invoice.

When an invoice is transferred to edoc invoice link for IGF, the current tax keys are loaded from IGF. For each line item, the system checks whether the tax key used is a reverse charge tax key. If it is a reverse charge tax key, the tax is calculated on the net amount for the line. The total tax amount is also increased by the calculated tax amount at the header level of the invoice:

More information about determining the reverse charge tax percentage rate

From version 1.91 of IGF, start and end dates can also be used. The function for determining the reverse charge tax percentage rate has therefore been extended.

The function determines the valid tax code rate value based on a specified reference date and a list of possible tax codes. Each tax code can optionally be defined by a validity period.

Business logic for determining the reverse charge tax percentage rate (overview)

The following business logic ensures that the control code that best matches the specified reference date is always used:

• Validity check:
  Each control code can have a start date (DATEFROM) and/or an end date (DATETO).

  • If no period is specified, the tax code applies without restriction.

  • If only one start date is defined, the control code applies from this date.

  • If only one end date is defined, the control code applies up to this date.

  • If both dates are defined, the reference date must be within the specified period.

• Prioritization for multiple matches:
  If the reference date matches several tax codes, the following is preferred:

  1. The control code that is most specifically defined by both date restrictions.

  2. If the number of restrictions is the same, the tax code whose validity period starts later is selected.

• Result:
  The determined tax code rate value is returned. If no tax code meets the conditions, the original tax rate is used.