The construction industry's reversed tax liability entered into force on 1 April 2011. This page provides instructions for specifying the required settings with regard to the processing of reverse VAT in Procountor.
Reverse construction industry can be selected for purchase and sale receipts and rows in the accounting view. Construction reverse VAT can also be selected from Defaults/Default accounts in the partner register.
If reversed tax liability is applied to the sale of construction services, the seller provides the buyer with an invoice containing the normal invoice information. The tax rate or amount of tax are nevertheless not recorded on the invoice. The invoice must additionally include the buyer’s VAT number (business ID for Finnish buyers) and the information that the buyer is liable for the tax. Either the grounds for the buyer’s tax liability or a reference to Section 8c of the Value Added Tax Act or Article 199 of Council Directive 2006/112/EC. The legal information can be added to the defaults in Usage settings or the Sales invoice additional default info field in the business partner’s Additional information.
The new fields will also be included on the periodic tax return. The periodic tax return includes separate sections for reversed tax liability for the purchase and sale of construction services:
- In section 319, the seller reports the total sum of construction services sold under reverse tax liability.
- In section 320, the buyer reports the total sum of construction services purchased under reverse tax liability. The buyer calculates the payable tax according to the 24% tax rate and declares it in section 318. Insofar as the purchases are deductible, the buyer calculates the amount of deductible tax according to the 24% tax rate and reports them as deductible tax in section 307.