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What is a VAT obligation?

As has already been explained in the VAT codes module, the VAT works in two ways within RentMagic: VAT codes affect articles, VAT obligations affect customers. VAT obligations are especially important for conducting international trade. If international trade is not used at all, VAT obligations do not have to be arranged. If necessary, check this with your accountant.

Each article receives a VAT code. These VAT codes are created in the module VAT codes.

If higher B2C sales are generated abroad in international trade (different rules apply in many countries), these VAT obligations can be created if desired. In this module you determine which rates should be applied for which customer. In the VAT obligation overview it is possible to manage VAT obligations. Make sure that the VAT codes have already been created.

The following example shows an overview of VAT obligations.

A VAT code is always linked to an item, a duty is always linked to a customer. This means that during the trading process, for example when creating a rental order, when adding an item, first (1) it is checked in which VAT code the item has been allocated. Then (2) we look at which duty applies to the chosen customer with this order. The system then selects the correct VAT liability number. The corresponding percentage, which you see in the right-most column, is entered on the line of this order. Of course, a different VAT liability number may apply to every order line. It is a fiscal obligation to show the correct VAT rates on the reports, such as an order confirmation or a printed invoice. It is also wise to show the VAT bases at the bottom of the report, which can be set perfectly in the RentMagic report generator. The VAT principles are already included in the standard attached reports in RentMagic.

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