Presentation on theme: "VAT Guidelines for Tooling"— Presentation transcript:
1 VAT Guidelines for Tooling Volvo Group VAT guidelines for Vendor Tooling
2 VAT Guidelines for Tooling Scope: applicable for all Tooling suppliers when billing Volvo Group Companies.Objective: Volvo Group is expecting the suppliers to be tax compliant and issue invoices in accordance to Volvo Mandatory Invoice Information instruction [link] , the Tooling order and Payment plan. Volvo Group must secure the right of deduction of input VAT - to avoid that VAT become a cost.Prerequisites:To secure a Tax compliant billing;Follow the tax rules & laws that applies to issuing of a tax compliant invoice;Always mention the Country Goods location on the invoiceMention correct ship-to address on the invoiceTooling should not be moved to another country during a prepayment plan without prior approvalPrepayment invoice or Final invoice when following a payment plan needs to be mentionedTooling invoices must have the invoice date in accordance to Payment planVAT amount mentioned in local tax reporting currencyThe VAT number of you as a supplier and Volvo Company as a customer;Use the VAT number of the supplier in the country where tooling is located if applicableUse the VAT number of the legal buyer Volvo Group company in the country where tooling is located if applicableEDI billing is not recommended due to EDI can’t capture all needed information.Normally a supply of tooling in a country will be with a VAT charge.Use the supplier Partner id setup with relevant VAT number .
3 VAT Guidelines for Tooling Instruction:Scope; for the supplier to manage correct invoicing and the correct VAT number of the Volvo Group Customer use the following pages 4-8.1. Identify the Customer that you are billing, column A + B:In column B you need to select the Volvo legal company that purchase tooling from you.Identify the country where tooling is located, column C + D:If the Volvo legal company has several VAT registration numbers, this will be indicated in column G, B is showing the same legal company several times.If the Tooling location is in a country where the Volvo company is registered for VAT use the VAT number for that country.If there is no VAT number in the country location of tooling , then the column C, company code “SE” in “SE26” indicates the country of residence and that VAT number should be used.3. Select the relevant VAT number of Volvo Customer, column F + G:Applicable VAT number of Volvo legal company is found in Column G.
9 Examples Tooling flows , where Volvo Truck Corporation is the customer/legal company: Identify the Customer using column A + BSupplier Order indicate CustomerVolvo Lastvagnar AB/ Volvo Truck Corporation (both are valid names)SE GothenburgSwedenIdentify the Country where tooling is located using column C+ DTooling flow 1; Supplier is in Belgium and Tooling location is in Belgium.Tooling Flow 2; Supplier is in UK and Tooling location is in Belgium.Select the VAT number of Volvo Customer using column F + G:Tooling flow 1; BETooling flow 2; BE
10 Example: Tooling Flow 1 - Supplier is a Belgian Company and Tooling remains in Belgium. (E) InvoiceSupplier in BE(B) Customer in SE(D) Tooling Location: BelgiumFrom VAT #: BE0XXXXXXXX(G) To VAT #: BE*Volvo expects suppliers to be VAT compliant and charge correct VAT rate and valid VAT exempt if 0% VAT.(A) #(B)Bill to(C) Company code(D)Country Tooling Location(E)Supplier invoice*(F)Country VAT (Tax) number to bill(G)Customer VAT number25.Volvo Truck CorporationSE26BelgiumInvoice * + VAT / ExemptBE(Belgium)BE
11 Example Tooling Flow 2: Supplier is an UK Company with a Belgian VAT number Tooling remains in Belgium.(E) InvoiceSupplier in UK(B) Customer in SE(D) Tooling Location: BelgiumFrom VAT #: BE0XXXXXXXX(G) To VAT #: BE*Volvo expects suppliers to be VAT compliant and charge correct VAT rate and valid VAT exempt if 0% VAT.(A) #(B)Bill to(C) Company code(D)Country Tooling Location(E)Supplier invoice(F)Country VAT (Tax) number to bill(G)Customer VAT number25.Volvo Truck CorporationSE26BelgiumInvoice * + VAT/ ExemptBE(Belgium)BE