Configure taxation (VAT & GST)

Taxation is set up automatically in Rentman using the default VAT rates for your country. You can manually change the VAT rates or set different rates for a project. In this article we will explain how to:

  • Change and apply VAT rates
  • Set up VAT for customers in countries that employ different VAT rates.
  • Change the VAT rate for your project or invoice 

How VAT works in Rentman

VAT rates for your country are pre-configured according to your country’s rates. You can configure how (much) VAT is charged and add different rates using VAT classes and VAT schemes.

VAT Classes
define the different rate types for your countries. By default these are set to:

  • high rate
  • low rate
  • 0 rate (goods excluded from VAT)

To edit or create a new VAT class go to Configuration >  VAT Classes

VAT Schemes
With VAT schemes you link the VAT classes to a specific percentage. They allow you to charge a different VAT rate for (future) projects or invoices.

Setting up a new VAT Scheme

If you want to apply new or changed VAT rates for your existing you can do this with VAT schemes.

  • To edit or create a new VAT scheme go to Configuration >  VAT schemes (under financial)

VAT Schemes have three options:

  • Rates: These are the VAT classes that you've configured in Rentman (high, low, zero, etc.) 
  • Fixed rates: A single rate that will be applied to the entire project. 
  • VAT reverse charge: A 0% rate for cross-border business. 

Changing VAT rates

If you want to change the default VAT rate you can either do this by changing the percentages, or by setting a different VAT scheme as default.

Default VAT scheme and classes
To change the default VAT schemes and classes go to the Configuration module > Financial.

Here you can set the default rates that apply to all:

  • Equipment items
  • Crew functions
  • Transport functions
  • Insurances

VAT class for specific equipment items
VAT can vary per equipment item. For each item, you can configure what class should be used (high, low, or zero-rated in default)

  1. Navigate to the equipment module > double click on an equipment item to edit it
  2. Scroll down to the financial data > select the VAT class you want to set for this item

VAT scheme for specific contacts
If you have a client from a country you can set a different VAT scheme for this contact. When creating projects and invoices for this contact, the VAT scheme you set for them will automatically be applied.

  1. Go to the Contacts module > double click on the contact to edit the details
  2. Go to the Payment tab > Choose the preferred scheme

Charging different VAT rates in your projects

You can charge a different VAT rate for a customer by changing the VAT scheme in your project or invoice.

For a complete project

  1. In an opened project, go to the Financial tab.
  2. Next to VAT, choose your desired scheme.

For an invoice

  1. Go to the Invoices module.
  2. Add a new invoice or select an existing invoice and click edit.
  3. At the bottom of the heading ‘Invoice’, choose your scheme.
  4. Click (Re)generate to generate the invoice with applied VAT scheme.
  5. Click Save to apply your changes.

Frequently asked questions

The VAT rate in my country will change. How do I apply this in Rentman?
Read this section for more information.

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