VAT & Tax
Set VAT rates and VAT regimes such as reverse charge, and validate customers' VAT numbers
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Here you can read how VAT ends up on your invoices and how Tillor checks a customer's VAT number. The check runs through VIES, the European service for looking up a VAT number.
VAT rates
VAT rates are set per product. Go to Administration > Products and open a product to choose the VAT % from the available rates (by default 0%, 6%, 9%, 12% and 21%).
Reverse charge and other regimes without VAT
Sometimes you do not charge VAT, but that is not simply a 0% rate: the customer has to declare the VAT themselves, or the supply is exempt. That is why the VAT % list of a product contains five regimes below the rates. If you choose one, the product is set to 0% and Tillor knows why.
| Regime | When | Box in the VAT return |
|---|---|---|
| Reverse charge (EU services) | A service for a VAT-registered customer in another EU country | 44 |
| Reverse charge (co-contractor) | Work on immovable property for a Belgian VAT-registered customer who files periodic returns | 45 |
| Intra-community supply | Goods you send to a VAT-registered customer in another EU country | 46 |
| Export outside the EU | Goods that leave the EU | 47 |
| VAT exempt | A supply that is exempt by its nature (article 44 of the VAT Code) | 00 |
A regime does four things that a plain 0% rate does not:
- On the invoice the line shows
0%*, with the legal statement for the regime below the totals, for example Reverse charge: VAT is payable by the customer. If two regimes appear on one invoice, the second gets**. - Booking only works with a VAT number for the two reverse charge regimes and for an intra-community supply. Enter the number on the customer profile; it then also appears on the invoice.
- To the accounting system the line goes with the code of the regime, so it lands in the right box of your VAT return. See Admisol.
- Over Peppol the line gets the VAT category of the regime.
You decide which regime applies
Tillor does not check whether a customer or a supply qualifies for a regime. If in doubt, ask your accountant.
VAT number validation
When you enter a VAT number on the customer profile, Tillor checks it automatically through the European VIES service as soon as the country has been filled in.
How it works
- Open Customers > customer (section Customer Details)
- Set the country and enter the VAT number (for example
NL123456789B01orBE0123456789) - Tillor validates the number automatically (after a short pause)
- For a valid VAT number a green tick appears; click it for company details from VIES
- Want to copy the name and address? Click Apply company address in that window (the company name goes in the first name field)
- For an invalid VAT number a red icon appears with an explanation
VAT validation works for all EU countries. For non-EU companies you can enter the VAT number manually without validation.
Supported countries
Validation supports all EU member states, including the Netherlands (NL), Belgium (BE), Germany (DE), France (FR) and all other EU countries.
Country code on the invoice PDF
On the invoice PDF, Tillor adds a missing country code automatically for countries where that is the usual way of writing it: if you enter 0123456789 for a Belgian customer, the invoice shows BE0123456789. This does not happen for Spain, Italy and Portugal, because the national tax number is written there without a country code (a Spanish NIF such as B04876793 therefore stays unchanged). If you type the country code in the field yourself, it is always kept.
Belgian customers and Peppol
For Belgian customers with a VAT number, a Peppol ID must be set on the Invoicing tab before you can book invoices. This is a legal requirement for B2B invoicing in Belgium.
See the Peppol documentation for more information.
VAT on invoices
All invoice lines automatically show the right VAT rate based on the linked product. On the invoice you see Subtotal, VAT and Total; the invoice PDF also contains an overview per VAT rate.
Adjusting VAT per line
Do you have permission to change organisation settings? Go to Settings > Invoicing and switch on VAT rate dropdown on draft invoice lines. Draft invoices then get a column for choosing the rate per line (the options follow the rates configured for your organisation). When you select a product, the product's default rate stays the starting value. In the same column you also choose a regime without VAT for a single line.