Received invoice under Article 76(a)

PANTHEON Web Light enables you to receive invoices with the reverse tax charge under Article 76(a).

When the Reverse Charge mechanism is used, the buyer is the one that has to calculate and pay the VAT. The supplier does not charge VAT for the completed delivery, but must reference Article 76(a) ZDDV-1 on the invoice, stating that the delivery of goods or services is the object of the Reverse Charge.

Below, an example of receiving an invoice under Article 76(a) is described.

CASE SUMMARY The person responsible wishes to create a new received invoice under Article 76(a). This is done as follows: Setting the tax rate in the Tax rates register Creating a new received invoice Creating a payment order under Article 76(a)

1 Setting the tax rate in the Tax rates register

The person responsible wants to receive an invoice under Article 76(a), so the tax rates in the Tax rates register must be correctly set beforehand.

For an example of setting tax rates in PANTHEON Web Light, see the chapter Tax rates in the user manual.

In this case, the person responsible created new tax types 0A, 2A, and 9A named 'Reverse tax.'

2 Creating a new received invoice

The person responsible opens a new received invoice by selecting the Purchases module and the New received invoice submodule.

An empty form for entering data is opened.

The Document type field is automatically populated with type 1000 - Purchase - Materials Warehouse.

In the Supplier field, the person responsible selects supplier Tent Materials Ltd. from the drop-down list, and adds items into lines.

Manually, the person responsible selects tax rate 2A - Reverse tax 22% for both lines, from the drop-down list in the VAT column.

In the lower right corner of the document, the Article 76(a) field is located, where the total amount of the invoice lines where Article 76(a) was used is calculated.

HINT In the same way, you can also create and generate reports of Orders for deliveries of goods and services under Article 76(a). For more information about how to enter data into VAT ledgers, see the example Received invoices under Article 76(a).

3 Creating a payment order under Article 76(a)

Next, the person responsible creates a payment order.

Firstly, the person responsible confirms the document by selecting the Approved option in the Status field.

The person responsible selects the arrow next to the Wizards button in the toolbar and selects Create payment order from the drop-down list.

The program opens the Financials | Transactions module.

In the In progress tab, the newly created payment order is visible.

The created payment order displays the amount excluding VAT.

HINT For a comprehensive example of creating a payment order from a new received invoice, see the chapter Creating a payment order in the user manual.