With Plug&Pay it is possible to automatically reverse VAT. This is only possible if someone fills in a valid VAT ID at the checkout.
If a customer is from abroad and the rule is that VAT will need to be reversed, Plug&Pay automatically includes a VAT reversed notice on the invoice. Convenient! 🙌
Reversing VAT retrospectively for an order
With orders, it is not possible to reverse the VAT retrospectively within Plug&Pay. The invoice is already fixed and the payment has already been made for it. To still reverse VAT for an order, you can credit the full amount of the order and refund it to the customer.
You then create a new order, adding the customer's VAT ID. This way the customer pays the correct amount and the administration is correct on both sides.
Reversing VAT for a subscription
You can also reverse VAT for an existing subscription. This is only possible for the next direct debit, so you are not reversing VAT for invoices in the past.
Fill in the customer's VAT ID so that it appears on the invoice for the next order.
You will then also need to change the contents of the subscription.
Choose the option 'Reverse VAT' here.
💡 TIP: We use the VIES database from the European Commission to check whether a VAT ID is correct. If a VAT ID is not correct, you can look it up on VIES for further information.