Having an invoicing system is one of these things you don't want to think about every day. You just need everything to work well. Flexible Invoices WooCommerce is a plugin that has already allowed independent invoicing in your online store based on WooCommerce. This time we have added new functionalities to it, adjusting invoicing in WooCommerce to the existing EU law.
Flexible Invoices WooCommerce 2.8, we have adapted plugin to EU regulations. Now you can easily issue invoices for customers from any other European Union countries! The plugin offers a comprehensive solution ready for quick use out of the box. Additionally, you do not need to install other paid plugins such as EU VAT Number.
Here are the improvements you can find and use in Flexible Invoices WooCommerce:
- MOSS Handling,
- Reverse charge description on invoices,
- Currency exchange table,
- Exchange rates from the European Central Bank,
- Validation of the VAT number in the VIES database.
Company accounting in the EU
From the company's point of view, acting within the European Union requires to be in accordance with a series of regulations and conditions that must be met. It is no different in the case of invoicing and documenting transactions with contractors from the European Union. A valid invoice is very important for each side of the transaction.
One of the most important issues, when selling products and providing services abroad, is determining the country where VAT should be settled. It's about calculating tax amount correctly, VAT rates and placing specific data on the invoice. This is a part of the MOSS system. You can read about it down below :)
From 2015, VAT on digital goods (and other telecommunication, broadcasting or electronic services) is usually charged in the country of which the customer is a resident (who is not a VAT taxpayer). Sometimes when placing an order, the address provided by the customer is different from one that is suggested by the customer's current IP address location. Therefore, you can additionally allow the customer to confirm his/her address to apply the proper VAT rate for that given country.
Our plugin will allow you to issue invoices for the appropriate VAT rate of the customer's country. By default, you can configure tax rates in WooCommerce. Read more about this in the article about WooCommerce Taxes - Complete Tutorial.
However, if we apply the MOSS rules and the foreign company is obliged to settle the tax, then the invoice does not specify the tax amount or its rate. The most common solution, in that case, is to include an annotation to an invoice - i.e. not taxable. There should also be information about the reverse charge procedure placed on an invoice for such an order.
Here you have an example invoice for a business client:
Reverse charge description on invoices
If you sell for business customers, the transaction will be settled using the reverse charge rule. The invoice has to contain the EU VAT number of your business client who declares it when placing an order. In this case, the invoice should not include VAT.
WooCommerce won't help us with that. But everything is possible in Flexible Invoices for WooCommerce set up like on the screenshot below:
See instructions for all settings of the Flexible Invoices WooCommerce plugin. You will find there also those related to the adaptation with EU regulations.
Conversion of VAT into local currency
Did you know that you need to convert VAT into your currency when issuing an invoice in another currency? With Flexible Invoices WooCommerce you can do that with ease. Furthermore, the automatic download of the exchange rate from the European Central Bank will speed up the process of invoicing.
Invoices in a currency other than the default for your store and with specified VAT may use the new function. It is about the conversion table on the invoice. Here's what that kind of invoice will look like:
Exchange rates from the European Central Bank
With the Flexible Invoices WooCommerce plugin, you can enable displaying a conversion table on an invoice of VAT rates, net amounts, the amount of VAT and gross amount in the main currency of the store. What is most important, the exchange rate will be taken directly from the European Central Bank on the day preceding the sale.
Additionally, you can set a different conversion date to be used when editing an invoice directly. After saving the changes, the edited values will appear on the invoice.
Validation of the VAT number in the VIES database
Invoice for an EU business client should include the buyer's EU VAT number.
Here you can find an article about Adding a VAT Number Field in WooCommerce.
With Flexible Invoices WooCommerce this field is added by the plugin when a client asks for an invoice at a checkout form. When the EU VAT number is filled up at checkout, the plugin checks the given number in the European VIES system. In the absence of an active number, it's also possible to choose a specific further action. Furthermore, you can choose if the plugin shall:
- Allow the customer to place the order. VAT will not be removed from the order
- Allow the order to be placed, but remove VAT from it
- Not allow the order to be placed and display an error message:
Flexible Invoices WooCommerce adjusted to EU customers and regulations - summary
Running a business and online store is fascinating when you don't have to deal with accounting matters :) You shouldn't also spend hours solving the accountant issues.
Our plugin will speed up invoicing and simplify things that seem complicated. The correct setting of the plugin is easy, sometimes it is only checking one additional option. Not to mention, getting exchange rates directly from the ECB, verifying the customer's VAT number in VIES and automatic MOSS handling. These new features will certainly save much of your time. What is more, you will also be sure that invoices for your foreign customers will be issued correctly.
Also check out the plugin page, where you can find even more information about its features. And if you have any questions, do not hesitate to email us!