EU VAT Management for Self-Invoices

Kiflo calculates and adds EU VAT automatically to all invoices generated on behalf of partners.

Who is it for?

Automatic EU VAT management is for any EU-based company that:

• Pays commissions to partners
• Uses the self-invoicing feature to let Kiflo generate invoices
• Has partners in the EU

If one of the above statements is false, you probably don't need EU VAT management.

How does Kiflo calculate EU VAT?

Kiflo collects VAT IDs and billing details from partners. VAT IDs are validated automatically to ensure partners provide valid information.

When Kiflo generates invoices for partners, based on your country and the country of the partner to pay, the following rules apply:

• Collect VAT: If both parties are in the same EU country with a valid VAT ID, Kiflo uses the VAT rate of the country and adds VAT to the invoice.
• Reverse charge: If both parties are in different EU countries and have provided a valid VAT ID, no VAT is added to invoices, and the following legal mention is present in the footer: "Reverse charge – Article 196 of Directive 2006/112/EC".
• No VAT: If one of the parties is not in an EU country, no VAT is applied, and no footer is added.

How to configure automatic EU VAT management?

EU VAT management is automatically enabled when you configure self-invoicing. Refer to this article to understand how to enable self-invoicing: How to configure self-invoicing?