The possibilities around VAT levies have been greatly expanded with the arrival of version 7 of Vtiger CRM. Now you can also set up your international trade. This article describes the new features in Vtiger CRM version 7 compared to Vtiger CRM version 6.

From Vtiger CRM version 6 onwards

In version 6 of Vtiger CRM there was already the option to create and activate different VAT rates. On the quote/sales order/purchase order/invoice you make a choice between tax mode Group or Individual.

With tax mode Group, activated VAT percentages are levied on the subtotal. You can manually adjust this percentage.

To use tax mode 'Individual' you check for a product or service per VAT rate whether it is also levied for that product or service. On the quotation/sales order/purchase order/invoice the corresponding VAT is then retrieved per product or service.

In addition to these VAT rates on products and services, there are separate VAT rates levied on handling and shipping costs.

From Vtiger CRM version 7 onwards

In version 7 of Vtiger CRM, the above setup is still in place, but a lot of new functionality has been added.

Tax Regions

You can now enter different tax regions through the Tax settings in Vtiger CRM. With this you control that certain taxes (see Tax type (fixed or variable)) and discounts are and are not levied depending on the destination. For example, think of the Netherlands versus Intra-Community.

The furnished regions are selectable on the following objects:

• quotation
• sales order
• purchase order
• invoice

Then Vtiger CRM will automatically include the corresponding taxes in the calculation. If no region is chosen, Vtiger CRM will use the default set taxes.

VAT rates: additional features

1. Calculation Method

For each VAT rate you add to the system, you can now choose between single (simple), compound (compound) or deductive (deductive) VAT.

Single value added tax is levied directly on the subtotal minus discount.

Compound VAT you link to a simple VAT. The tax is levied on the amount after the simple VAT has been levied.

Calculation example composite VAT

Set

• Subtotal minus discount is €100
• Simple VAT A is 21%
• Compound VAT B is linked to A and is 5%

Outcome

• A. yields a tax of €100*0.21 = €21
• B. yields a charge of €121*0.05= €6.05
• The VAT to be levied becomes €27.05

Finally,deductive VAT levies a negative percentage on the subtotal minus discount. The deductive VAT is shown as a separate line at the bottom of the quotation/sales order/purchase order/invoice. Note: deductive VAT cannot be set per region. However, it can be manually adjusted on thequote/sales order/purchase order/invoice (provided the rate is active).

2. Load type (fixed or variable)

Here you can indicate whether a tax rate is always the same(fixed) or varies per region (variable). If you choose variable, you can enter a standard percentage and a different percentage for each region. On the quotation/sales order/purchase order/invoice the user selects the applicable region at the top of the product block.

When a tax rate is saved, it appears as a check mark on the product card. This was already the case in Vtiger CRM version 6, to allow different VAT rates between products (tax mode Individual). This has now been extended to include regions. As soon as you check a tax rate on the product map, the table with the different regions appears. You can still adjust the percentage for the specific product at that spot.

Add your own additional costs

In addition to the well-known Handling and Shipping costs, you can create your own additional costs in Vtiger CRM version 7.

Please note that these additional costs are not shown separately on the quote/sales order/purchase order/invoice. You will only see them broken down when you click on the Handling and shipping costs.

There is a distinction between costs with a fixed price (Direct price) or costs that are a percentage of the subtotal (Percent). This percentage is levied on the subtotal minus discount.

For the additional charges, you can again choose a type: fixed or variable per region. This works the same as with the VAT rates.

Subsequently, an additional cost is itself taxed. You create these taxes separately (just like in Vtiger CRM version 6) in the same way as the VAT rates on the products and services. At the cost center there is a checkbox to indicate whether tax should be levied at all. If so, you then indicate which rates. (Note: if you have chosen the calculation method composite on the rate, you must choose the basic tax rate and the composite rate here to actually have this implemented).

What do you find at the bottom?

Below is an overview of all items at the bottom of the line on a quote/sales order/purchase order/invoice. This overview is based on the tax mode Group. In case of Individual mode, the total VAT item is omitted (it is then calculated per line and is therefore already included in the subtotal).

General Comments

• You can make taxes and additional charges inactive, but not delete them.
• If you are using PDF Maker, there are limitations in what details you can show by default on a template. Additional features may then need to be created to make a template as desired.
• Taxes are a complex part of setting up and using Vtiger CRM. Despite our care, this article may contain inaccuracies. Also, Vtiger CRM may need to be set up differently in your situation. No rights can be derived from this article.

Increase rate of VAT low 2019

As of January 1, 2019, the low VAT rate in the Netherlands will be increased from 6% to 9%. How do you implement this in Vtiger CRM?

Adjust globally

Basically, you make this change on January 1 at CRM Settings > Inventory >Tax Management. Go there to the VAT low rate and change it.

If you work with regions (which is possible as of Vtiger CRM version 7) you can change this to only for region NL. You do this in the pop-up when changing the VAT low rate. In the pop-up the Tax type will be set to Changeable. You will see a table with tax rates per region.

If you work with standard costs, such as handling and shipping surcharges, then you must adjust the rate for these separately.

Customize by product/service

In Vtiger CRM, the VAT is also on the products and service. The rate thereon is independent of those in the CRM settings. Therefore each product and service with rate VAT low needs to be adjusted.

On quotes, sales orders, purchase orders and invoices, Vtiger CRM chooses VAT on the whole or VAT per product/service. VAT on the whole is the most commonly used, with VAT per product/service the VAT percentage can differ per product or service.

If VAT is used per product/service, then adjusting VAT low on each product and service will be necessary as of January 1, 2019.

If you work with VAT on the whole, then it goes well on quotation, sales order, purchase order, invoice in principle without adjusting the products and services. The adjustment is then done for the purpose of a correct display in Vtiger CRM.

Other

Do you work with a link to, for example, a webshop, ERP or accounting system? Please contact us in time to discuss the new situation.