Last updated: 13.05.2020
Applies from: 2020.05.00 and later
Construction VAT
Sales of construction services to other companies in the construction sector are subject to the reverse charge mechanism, which means that the buyer of the service reports and pays the VAT to the state, not the seller. So when selling construction services to customers that are construction companies, no VAT should be added to the invoice. The same applies when you charge a haulier or subcontractor for construction services that you have purchased from them, provided that you are considered a construction company. In this case, no VAT will be added to the credit note, but you, as the buyer, have to report and pay the VAT.
More information on when the reverse charge principle applies is available on the Swedish Tax Agency’s website.
Configuring construction VAT in Opter
This is how to use construction VAT for invoices and crediting transactions for orders and shipments relating to construction services:
Registering a VAT rate of 0%Call the VAT rate “Construction VAT 0%”, or similar, to make it easy to find it in the drop-down lists where VAT is selected, and so that the part of the sale to which construction VAT applies can be kept separate in places such as the account coding and VAT reports.
Creating or setting up services and price items with construction VATIn order to indicate that orders and contracts are for construction services, create services and price items with construction VAT and then select them on the orders or shipments.
Invoicing customers with construction VATIn order for construction VAT to be used when invoicing customers for construction orders, the customer must be defined as a construction company.
If you manually select a VAT rate in the column VAT for the item in the order reception, or in the drop-down list VAT rate in the box Price on the order, that VAT rate applies to the order, and not the construction VAT. For more information, seeHow Opter chooses the VAT rate for customer invoices.
Charge construction VAT to hauliers and subcontractorsIn order for the construction VAT to be used when settling for construction contracts, you must define the office that purchases the construction service from the haulier/subcontractor as a construction company.
If a VAT rate is selected manually in the VAT column for the price item in order reception, or in the VAT rate drop-down list on the Pricing tab for the shipment in order reception, that VAT rate rather than the construction VAT rate applies to the shipment. For more information, see How Opter chooses the VAT rate on credits.