Question

VAT on BOE

  • 8 January 2024
  • 3 replies
  • 53 views
K
Rank
Badge +2

Hi everyone,

In French tax rules for sales of services in France, VAT on BOE must be reported at the time of payment, not when the BOE is created.

In IFS Cloud, VAT voucher is generated when the BOE is created and it’s just possible to postpone  the Tax Liability date.

In several cases, VAT reconciliation is difficult because VAT voucher entries are posted on a month and VAT transaction to declare is available on the following month.

Do you find yourself in this situation? If so, how do you handle it?

Thanks in advance for your feedbacks.

Regards,

Virginie

3 replies

F
Rank
Userlevel 6
Badge +19

Hello @K4uVirgiM 

Have you tried creating a BOE with a tax code that has tax received/disbursed method Payment? You can create a new tax code with tax method payment as below. In that case only when the BOE is paid the tax transactions will be created

 

 

https://superp.solutions/
K
Rank
Badge +2

Hi @gumabs,

Thank you for your comment.

My tax codes linked to customer BOEs are set to tax received/disbursed method Payment.


The problem comes from the fact that, for BOEs, it is BOE Creation that is considered as payment. The VAT accounting entry is therefore generated at that moment.


In my opinion, it's the BOE cashing that should trigger the VAT entry not the BOE Creation.

Please find attached a document which explains the issue with more details.

Have a nice day.

Regards,

Virginie

1 Attachment
F
Rank
Userlevel 6
Badge +19

Hello @K4uVirgiM 

I cannot download the file you attached.

Just to understand whole process, your issue is you have customer invoice with tax code Tax Method Tax Disbursed set to Payment. When you receive the payment in BOE then tax amount is reported.

If until this moment my assumption is correct, then I think this is expected behavior. Because payment is completed against customer therefore system is creating VAT transactions.

 

For your specific need, you can create an idea for French localization to overcome this difficulty. On the other hand, create a ticket to support to describe the issue.

 

I will be glad to see the file you shared, can you please upload again. I have following message since yesterday.

 

 

Hope this helps

https://superp.solutions/

Reply


Terms & ConditionsCookie settings