As of January 1, 2019, the low VAT rate will be increased from 6 percent to 9 percent in the Netherlands. What does this mean for invoice processing? What impact will this have on the use of Basware and/or Kofax?
First, it is good to know what percentage applies when. The percentage to be calculated is determined based on the date when goods or services are supplied, regardless of the invoice date. Thus, when supplying before January 1, 2019, a thus a VAT low rate of 6 percent applies, when supplying on or after January 1, 2019, the VAT low rate of 9 percent applies.
This therefore means that you can find both percentages on invoices. To ensure correct processing of invoices, it is therefore necessary to be able to work with both percentages or codes during the transition period.
Do you receive products or purchase services that fall under this low VAT rate? If so, it is advisable to check, or arrange, a number of things in your invoice processing package (Basware Alusta or IP) and other applications (Kofax) to ensure correct invoice processing.
What to do.
In most cases, Basware takes the VAT rates from the master data/ master data in the ERP package or another financial system (SAP, CODA, Oracle EBS, et cetera) via the interface. In this case, simply create a new VAT code in the ERP system. You then need to verify that this is properly copied and displayed in Basware.
However, in some cases, the new VAT code needs to be created in other applications (Basware, Kofax, et cetera) in addition to the ERP system.
ICreative recommends performing a so-called regression test in a test environment, with a newly added VAT low rate, to determine whether the invoice processing process is complete and correct. In doing so, you should take into account all applications relevant to you that support the invoice processing process. Think of your ERP systems, invoice processing software, scanning applications and order systems.
Support
Given the transition period in which two low VAT rates apply and the short period of time in which you need to start working with these rates, it is advisable to determine the impact as soon as possible so you know where you stand. ICreative can help you with this.
If you have questions, or require support in performing a regression test, please contact the ICreative Service Center via the ICreative Customer Portal: https://issuelog.icreative-cloud.com/account/login, by email at service@icreative.nl or by phone at +31 (0) 318-493151.
