In some cases, such as when providing services to European Union contractors (reverse charge), your customers may be entitled to VAT exemption. If the participant requests it, you can manually apply the exemption on their sales documents, such as a pro forma invoice.
From this article you will learn:
How do I find the payment associated with a participant's order?
How to apply VAT exemption on a pro forma invoice step by step?
Where to choose the right legal basis for VAT exemption?
Step 1: Find the participant's payment
All operations related to VAT exemption are performed at the payment edit level, which will automatically update the related documents.
In the left-hand menu of the administration panel, select Events.
Go to the event to which the application relates.
In the event menu, locate the Orders section and click Payments.
In the list of payments, find the one that is related to the customer's order. You can use the search engine by typing in an email address or order number, for example.
Click the three dots then Edit next to the selected payment.
Step 2: Apply the VAT exemption
When you get to the payment edit form, locate the section with invoice details.
Find the switch named VAT exemption and activate it.
After activation, a new field will appear: legal basis for VAT exemption.
Expand the list and select from it the legal basis given to you by the customer (e.g. "Reverse charge").
After making changes, click the Save button at the bottom of the page.
Done! The system will automatically update the pro forma invoice with the VAT exemption information and the selected legal basis. There is no need to issue a separate adjustment to the proforma.
💡 Tip:
Remember that you make changes at the payment level, not directly on the document. This will automatically update all related documents.
FAQ
What if the customer has already paid for the order and the final VAT invoice has been issued?
What if the customer has already paid for the order and the final VAT invoice has been issued?
In such a situation, it will be necessary to issue a correction invoice. This article describes the procedure for documents that are not yet final VAT invoices (such as pro forma).
How do I know which legal basis to choose?
How do I know which legal basis to choose?
The legal basis for applying the exemption should be indicated to you by the client. As an organizer, you are not a tax advisor - act on the basis of information received from the buyer.