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What are VAT codes?

When trading is done, one must always take VAT into account. Within RentMagic there are sufficient possibilities to keep the VAT administration up to date. RentMagic is also equipped to conduct international trade, with all the associated possibilities to record VAT. A common way is to shift the VAT for foreign trade, for example within the EU, provided that a VAT number is known and the customer can therefore also use the reverse charge rule.

The VAT within RentMagic is twofold: you can keep VAT codes and you can keep VAT obligations. VAT codes relate to articles / products. A VAT obligation relates to the customer. During the trading process, RentMagic will allocate the correct VAT to your customer for you. It is extremely important to properly set up the VAT administration in advance, because it is very difficult to completely rearrange the VAT accounting afterwards. This will then complicate your history.

VAT codes can be created according to your needs. Different VAT rules apply in every country, as do other VAT percentages that are applied. Within RentMagic you start with a clean slate, so you have to create the VAT codes first. The VAT codes you use are the codes that really apply to your trade. In the Netherlands oftenly they make use of the two rates; high and low, or 21% and 9%. In Belgium, it is respectively 21% and 6%. These codes then will have to be created in the system.

The created VAT codes can later be selected per item. Each article therefore has a VAT code.

If higher B2C sales are generated abroad in international trade (different rules apply in many countries), these VAT rates can be created if desired. However, you'll have to do this via the VAT liability module. In this module you determine which rates should be applied for which customer.

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