I didn't charge the correct VAT! / I now have to charge VAT
Ouch, you followed the billing process perfectly fine, everything went smoothly, but suddenly you realize that:
- you now need to invoice VAT and it applies to the invoice you have already issued
- you invoiced the wrong VAT amount (10% instead of 20% for example)
- you charged VAT but did not indicate it on the site
and now it's panic time.
It happens, grab a hot (or cold, or alcoholic, no judgement) drink and follow these simple steps:
Do it now or you will forget.
Simply by indicating your VAT number in the VAT number field and then specifying your VAT rate, easy!
We have taken this into account. You cannot yet modify your profile, but for the next invoice at the end of the project/month, you can still add a VAT rate without indicating the number.
Remember to update your profile as soon as you have your number!
Do not cancel them (otherwise it will delay clients' payment deadlines even further).
You will have to send us this little accounting monument called a VAT catch-up invoice to the address finance@acracy.co:
In short, it is a corrective invoice for the first invoice that must:
- indicate "VAT catch-up invoice not invoiced on invoice XXXX" (this is the reference of the invoice in question, which you can find in your "Invoices" space on the site)
- indicate the TOTAL amount of the project, including VAT as if you were invoicing correctly for the first time
- then deduct what has already been invoiced (i.e. the project's net amount)
- to leave only the VAT amount
So for example, you invoiced a project of 1000€ net via the site, and you need to catch up on 20% VAT (i.e. 200€).
Your invoice must contain this information:
VAT catch-up invoice not invoiced on invoice XXXX
Project YYY for ZZ days = 1000€
VAT (20%) = 200€
Already invoiced = -1000€
Amount to pay = 200€
Yes, it's less complicated than it sounds.
Send all this to finance@acracy.co and hop, let's forget about it and start fresh.
- you now need to invoice VAT and it applies to the invoice you have already issued
- you invoiced the wrong VAT amount (10% instead of 20% for example)
- you charged VAT but did not indicate it on the site
and now it's panic time.
It happens, grab a hot (or cold, or alcoholic, no judgement) drink and follow these simple steps:
1/ Provide all the necessary information in your administrative profile
Do it now or you will forget.
a/ How do I do that?
Simply by indicating your VAT number in the VAT number field and then specifying your VAT rate, easy!
b/ I don't have my number yet!
We have taken this into account. You cannot yet modify your profile, but for the next invoice at the end of the project/month, you can still add a VAT rate without indicating the number.
Remember to update your profile as soon as you have your number!
2/ What about invoices already issued?
Do not cancel them (otherwise it will delay clients' payment deadlines even further).
You will have to send us this little accounting monument called a VAT catch-up invoice to the address finance@acracy.co:
In short, it is a corrective invoice for the first invoice that must:
- indicate "VAT catch-up invoice not invoiced on invoice XXXX" (this is the reference of the invoice in question, which you can find in your "Invoices" space on the site)
- indicate the TOTAL amount of the project, including VAT as if you were invoicing correctly for the first time
- then deduct what has already been invoiced (i.e. the project's net amount)
- to leave only the VAT amount
So for example, you invoiced a project of 1000€ net via the site, and you need to catch up on 20% VAT (i.e. 200€).
Your invoice must contain this information:
VAT catch-up invoice not invoiced on invoice XXXX
Project YYY for ZZ days = 1000€
VAT (20%) = 200€
Already invoiced = -1000€
Amount to pay = 200€
Yes, it's less complicated than it sounds.
Send all this to finance@acracy.co and hop, let's forget about it and start fresh.
Updated on: 24/03/2023