Setting Up Reverse Charge Notice
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.
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
The reverse charge notice is available as of JustOn 2.57.
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):
Picklist Value API Name
|RC||Reverse Charge Region, VAT number is available||Takes the text from the template field
|EU||Reverse Charge Region, no VAT number||Takes the text from the template field
|Non-EU||No Reverse Charge Region||Takes the text from the template field
If the field is empty or set to value other than
Non-EU, then no reverse charge text is displayed.
- Navigate to the fields list of the Invoice object.
Create the following new field.
API Name Data Type Description ShowReverseChargeText Picklist
Specifies the condition for selecting the reverse charge notice. According to the values
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 "reverse charge" region (
RC, see Using Invoice Region to Control Tax Rules) and the availability of a VAT number:
IF (ONB2__Region__c = 'RC', IF ( ISBLANK( ONB2__Account__r.ONB2__TaxNumber__c ), 'EU', 'RC' ), 'Non-EU' )
For compatibility reasons, JustOn supports the field
ShowReverseChargeText to be set up as a checkbox.
- If selected, it corresponds to the value
RCand 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.
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:
||Selected Text Block|
|RC||Reverse Charge Text|
|EU||Reverse Charge Text EU|
|Non-EU||Reverse Charge Text Non-EU|
To configure this text:
- Open the template to be edited.
In the Texts section, double-click the
Reverse Charge Text,
Reverse Charge Text EUand
Reverse Charge Text Non-EUfields and specify the information as required.
Alternatively, you can click Edit in the detail view to edit the fields.
Template text blocks can contain
- plain text
- HTML code for tables, lists, links, etc.
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