The VAT on the invoice is calculated in the accounting system

When a webshop order is transferred to the accounting system, the VAT needs to be recalculated based on the VAT rules, that are set up in the accounting system.

The integration checks the amounts to validate that they match between the webshop and accounting system before an invoice is booked.

The webshop must handle VAT

Since the VAT on the invoice is calculated in the accounting system, the integration must know the amount excluding VAT. Therefore it is important, that VAT rules are set up in the webshop, so the amounts can be separated before and after VAT.

The amounts excluding VAT are used to calculate VAT in the accounting system, and the amounts including VAT are used to validate the totals.

It is important to know, that if your webshop is set up, so the VAT is included in the product price, to which no VAT is added, an additional VAT might be added in the accounting system.

To avoid this, you should either specify on the webshop module settings in IEX, that the prices are entered with VAT included, or you should remove the VAT amount from the product price in the webshop. For both solutions it is important, that VAT settings are enabled and VAT rates are set up in the webshop, so the integration knows, which VAT rates to use.

For more information about errors, that might occur in relation to the calculation of VAT, you can consult our article on errors in the validation of totals.

Multiple VAT rates and currencies

The currency is automatically handled in the accounting system.

When using few VAT rates (Domestic, EU, Abroad, Tax exempt)

On the invoice that is created, the VAT rate is assigned from a combination of the delivery/billing country, the VAT rate on the order, and whether it is a B2C or B2B customer.

The VAT rate that is assigned, is used to define the correct account, VAT zone and/or product group in the accounting system to set the VAT on the invoice. What exactly controls the VAT on the invoice is entirely dependent on the specific accounting system.

When using multiple VAT rates (differentiated EU VAT rates)

Handling multiple VAT rates requires, that both your webshop and accounting system is properly set up and prepared to support it.

Here we most often recommend, that dedicated functionalities to handle VAT One Stop Shop (OSS) are used, to set up and handle multiple VAT rates in the best possible way. It varies between the accounting systems, how this is handled. In the section "All Collections" > "Setting up the integration" you can find dedicated help articles to set up VAT One Stop Shop for the specific accounting systems.

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