Reverse charge procedure in the front end
Last updated
Last updated
This section explains the changes that the activation of the reverse charge procedure entails for the participant registration process in the front end.
If the reverse charge procedure is activated, participants will receive an additional query in step 1 of the registration process. In this query, they must specify whether the invoice recipient is a private or business person.
This choice is one of the criteria required to determine a possible VAT reverse charge. Only in the case of the business customer option is the reversal of the VAT burden considered in the following. If the participants classify themselves as private individuals here, nothing changes in the registration in the subsequent steps compared to registration without the reverse charge procedure.
In connection with the reverse charge procedure, the effect of vouchers on absolute package and category discounts must be taken into account.
Absolute package and category discounts are always to be understood as a discount on the gross amount. This means that the voucher is first applied to the gross amount and then the net amount is calculated from the remaining amount. In connection with the reverse charge procedure, these voucher effects should therefore only be used with extreme caution.
Example:
Package A: €119 including 19% VAT.
Voucher X: Gives 50 € discount on package A
→ Resulting price for users without reverse charge: €119 - €50 = €69
→ Resulting price for users with reverse charge: (119 € - 50 € )/1.19 = 57.98 € (not 119 € / 1.19 - 50 €)
If participants have selected Business customer in step 1, any output in the shopping cart will be based on the calculated net value.
In addition, a note is displayed stating that the prices are subject to VAT.
The exact amount of VAT is not displayed here, as this depends on various criteria that are not fully known here (Does the VAT reverse charge apply? How is VAT treatment regulated in the recipient's country?)
As long as the criteria are not fully clarified, offers are placed in the shopping cart with the previously defined VAT. However, this is not immediately apparent to participants due to the net value presentation.
The decisive factor for assessing the VAT burden is the specification of the billing address in step 3 of the registration. An additional VAT ID number field is displayed under the Company and Department fields for business customers. If the billing address is different, the entries relating to this address will be taken into account.
For business customers, it is mandatory to enter the company within the billing address. The VAT number must be entered in the billing address for business customers from other European countries. If desired, the validity check of the VAT number can be carried out at this point in the frontend.
If this information is not provided in the billing address, participants are given the choice of adding this information or continuing to book as a private individual without reversing the VAT burden.
After entering the important information such as invoice country, company name and VAT number, the system determines whether a reversal of the VAT charge is to be applied to this invoice. This is based on the backend settings (event country, reversibility of the VAT burden for the package).
Subsequent changes made by the participant to one of these factors relevant for the valuation always lead to a reassessment of the reversibility of the VAT charge.
Another change at this point is the handling of the billing address. This is now saved as a separate address.
In the front end, both addresses are then only processed via one interface so that participants do not have to enter them twice if the contact and billing addresses are identical. The background to this separation of the two addresses is that billing addresses and therefore also the VAT treatment can only be changed from the invoice. Subsequent changes to the personal address, as is possible in other contexts both in the frontend and in the backend, no longer have any effect on the invoice.
The overview is always a gross presentation. As the VAT reverse charge check has already been carried out, all amounts can be displayed here with the correct applicable tax amounts.
The prices of packages to which the reverse charge mechanism is applicable are displayed without a tax surcharge and with a note on the VAT treatment (tax note configurable in the backend). For packages where the reversal of the VAT charge is excluded, VAT is shown as usual. The total amount of the invoice is calculated from these parts, as it is to be paid in the next step and is later shown on the invoice.
When the reverse charge booking is completed, participants are taken to the completion page, where the invoice document is not displayed as usual. Instead, a message You will receive your invoice after checking the reverse charge details is displayed. At the same time, an email is sent to the organizer regarding the check, corresponding to the reverse charge setup.
