Settlements in France
From 1 January 2022, France will be obliged to introduce an automatic reverse charge rule for VAT. This will affect Settlements for Non-French Owners.
This is because the amount of the reverse charge VAT must be offset directly in the amount of rent paid.
To process this in Booking Experts, you will need to make a number of adjustments. These adjustments relate to Ledger accounts, the owner and the commission agreements. There will also be an automatic adjustment in the invoice template.
Ledger accounts
Adjustments will need to be made for the Ledger accounts of rent paid. Within this Ledger accounts, you will have to set the VAT percentage to 0%. This is because the VAT is already included in the rent paid out.
You can choose to create your own ledger account for each owner to which this applies, or bundle these owners under a common Ledger account. To do this, go to Ledger accounts and create a new ledger account.
Remove the default entered VAT rate. You can do this by clicking on the cross. This will make the VAT percentage 0%.
Commission agreements
In the commission agreement with the relevant Owners, there are also some settings that differ from the default. Go to commission agreements and open the commission agreement you want to change. Click edit and tick the use Ledger accounts Tariff box. In addition, link the correct Ledger accounts with 0% VAT.
Owners
It is necessary to set up that the owner is not subject to VAT. To do this, open the relevant owner. Click edit and uncheck the box_VAT liable_.
Rental invoice template
Once all the above settings are adjusted, a new line of text will automatically appear on the second page of the rental account invoice.
This text is as follows:
TVA autoliquidation
Should this text not appear on the invoice of the rental account, please check the above settings again.