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Setting Up Reverse Charge Notice

← Setting Up Tax Handling

Certain international business conditions make buyers, rather than suppliers, liable to pay the taxes on transactions. The reverse charge procedure is a common practice for trade within the European Economic Area, including Switzerland. It does not apply, however, to all businesses or products in all associated countries. For an overview, see Person liable to tax on the European Commission website.

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Consult your tax consultant about whether or not your business may use the reverse charge procedure.

When issuing invoices that are subject to reverse charge, suppliers must

  • Bill net prices only
  • Specify the recipient's VAT ID
  • Explicitly state that the reverse charge applies.

You can configure JustOn to display a reverse charge notice for invoices to be sent to buyers in specific countries. This involves

Enabling Notice Display

To control the display of the reverse charge notice, you create a new field on the Invoice object that sets the intended condition. You can configure this field as a picklist to enable users to select the condition manually, or as a formula field with the return type Text to have the reverse charge notice selected automatically. According to this field, JustOn then prints the appropriate text to the invoice PDF below the standard text field Text 3 (for details, see PDF Contents).

To support a usual EU business, the following conditions must be supported (either as picklist values or as the formula result, depending on your field configuration):

Formula Result
Picklist Value API Name		 Example Value Description
RC Reverse Charge Region, VAT number is available Takes the text from the template field Reverse Charge Text
EU Reverse Charge Region, no VAT number Takes the text from the template field Reverse Charge Text EU
Non-EU No Reverse Charge Region Takes the text from the template field Tax Information Non-EU

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If the field is empty or set to value other than RC, EU, Non-EU, then no reverse charge text is displayed.

  1. Navigate to the fields list of the Invoice object.

  2. Create the following new field.

    API Name Data Type Description
    ShowReverseChargeText Picklist
    Formula (Text)    		 Specifies the condition for selecting the reverse charge notice. According to the values RC, EU or Non-EU, the corresponding text is displayed.

    For help about creating fields, see Managing Object Fields.

Example formula that produces the reverse charge notice for invoices to be sent depending on the region (see Using Invoice Region to Control Tax Rules):

CASE (ONB2__Region__c,
    'RC','RC',
    'EU','EU',
    'NON-EU','Non-EU',
    null
)

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For compatibility reasons, JustOn supports the field ShowReverseChargeText to be set up as a checkbox.

  • If selected, it corresponds to the value RC and consequently, takes the text from the template field Reverse Charge Text.
  • If unselected, the behavior is equivalent to an empty field, which results in no reverse charge text being displayed.

Configuring Notice Text

The invoice template includes a specific text block for the reverse charge information.

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Whether the text is displayed or not depends on the setting of the corresponding controlling field on the invoice.

The template supports separate text blocks for three use cases:

Invoice Field ShowReverseChargeText Selected Text Block
RC Reverse Charge Text
EU Reverse Charge Text EU
Non-EU Tax Information Non-EU

To configure this text:

  1. Open the template to be edited.

  2. In the Texts section, click next to the Reverse Charge Text, Reverse Charge Text EU and Tax Information Non-EU fields and specify the information as required.

    Alternatively, you can click Edit in the detail view to edit the fields.

  3. Click Save.

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Template text blocks can contain

  • plain text
  • placeholders
  • HTML code for tables, lists and links

If you use HTML code in template text blocks, make sure to write all code in a single line to avoid line breaks being converted to <br/> tags.