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Two VAT rates on one invoice with purchase order

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Posted on by Community member

Hi,

I often receive invoices with two VAT rates on them.

Example, invoices with £10k zero rated and then £4k standard 20%.

We use purchase orders in our business, so matching them up to one invoice line is proving difficult.

Is there a way to split the VAT amounts on one invoice line, or do you need two ?

If you need two, then the PO has to have two lines also, which is not always the case.

I know there is a VAT adjustment option, but what effect does this have on VAT code reporting, ie would the full invoice amount show as only one VAT code ?

Any help is appreciated.

Thanks,

Ray

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BillurSamdancioglu 15,786 Most Valuable Professional on at

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Two VAT rates on one invoice with purchase order

Hi,

You may not be able to do by OOB functionality.

So you may ask for this functionality from Ideas Portal.
Community member 6 on at

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Two VAT rates on one invoice with purchase order

Hi gaurang,

I have invoices that come in, such as consultancy or aeronautical related invoices that are split between zero rated & standard.

So when raising a PR, we may know the total amount of the works to be completed, but we will not know the VAT split until we receive the actual invoice.

This is why I think it is hard to have the two lines on the PO as no split is confirmed until invoiced.

Thanks,

Ray
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Gaurangkumar Jani 4,480 User Group Leader on at

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Two VAT rates on one invoice with purchase order

Hi there,

Can you provide me some examples why you have 2 rates for the same PO Line?

For system to work you need to have 2 different lines of item to calculate different Tax rates of each line.

Thanks,

Gaurang
andreasraithel 4,836 Super User 2024 Season 2 on at

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Two VAT rates on one invoice with purchase order

Hy,

you need to have two lines (on PO and Invoice), each line has it's item tax code either "no tax" or "full tax".

Hope this helps.