Home Forums Support Problem with Negative Taxs

This topic contains 17 replies, has 5 voices, and was last updated by  ant.galanis 5 months, 3 weeks ago.

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  • #2084

    ridgarou
    Participant

    Hello everyone,

    I think I’ve found a bug. When I apply a negative tax to an invoice, the amount is not recalculated by subtracting the negative value, although this happens in the preview.

    I’ve solved this in “/ninja/resources/views/invoices/knockout.blade.php” commenting the line “if (TaxRate> 0) {” and everything related to its “else”

    Thanks and sorry for my poor english

    #2086

    Hillel Coren
    Keymaster

    Thanks for posting this, you english is excellent.

    This is by design, but the design could certainly be wrong… I wasn’t aware that negative tax rates existed, could you please provide more details.

    #2088

    ridgarou
    Participant

    Well, let me see if I can explain it clearly.

    In Spain, the freelances in issuing an invoice, must deduct a percentage as Income Tax (IRPF).

    If they make an invoice to a company, they have to make a sum of VAT (IVA) and subtract Income Tax (IRPF) subtraction. Something like this:
    If, for example, a bill of 500 euros:
    + 16% VAT 80 euros
    – 15% income tax 75 euros
    TOTAL 500 + 80 – 75 = 505 euros

    I hope you understand this explanation 🙂

    #2089

    Hillel Coren
    Keymaster

    Thanks, that’s helpful! I’ll work on testing/merging your pull request.

    How do you handle multiple taxes, are you setting one as a line item tax and the other as the invoice level tax?

    #13126

    John H
    Participant

    Hello Hillel,

    Has this issue been resolved yet? I am in the same situation as a registered freelancer in Spain.

    On my invoices I am required by law to deduct a 15% retention tax when I bill a registered company (which they then pay on my behalf) i.e. I state the full amount, add vat and reduce the retention tax.

    For example:
    Services: 100
    vat @ 21%: 21
    retention @ 15%: 15 (discounted from services total)

    Total due: 106

    I effect is that same function as the discount function already available but it needs to be labeled as a retention tax.
    There are currently 3.1 million registered ‘freelancers’ in Spain and this is a legal requirement for all of us when we bill Spanish companies.

    I’m afraid that if there isn’t a way of solving this I’ll have no choice but to change my invoicing system.

    Many thanks,

    John

    #13127

    Hillel Coren
    Keymaster

    It seems to work for me, are you seeing a problem?

    #13128

    John H
    Participant

    Hi Hillel,

    Thanks for getting back to me so quickly. Until you replied I didn’t realise that it was possible to change the label for ‘discount, which I’ve just figured out how to do and it actually does solve my problem for now. However it is still a work around of sorts as doing it this was its a bit cumbersome (there are different rates and changing percentage rate so that it is displayed means editing the label each time) also doing it this way I don’t I could include a discount and a retention tax.

    Unless I’m missing something and there’s a different solution?

    Cheers,

    John

    #13129

    Hillel Coren
    Keymaster

    Using a negative tax rate seems to work, what am I missing?

    #13130

    John H
    Participant

    Maybe it’s me that is missing something.

    I can’t seem to figure out how to apply a negative tax rate.

    Perhaps to you point me in right direction, thanks.

    #13131

    Hillel Coren
    Keymaster

    – Which version are you using?
    – What happens when you try creating a negative tax rate?

    #13132

    John H
    Participant

    I’m using the web-based version so I presume its the most up to date and I have a pro subscription.

    I’ve been trying to edit the taxes in basic settings > tax rates but I don’t seem to be able to apply a negative value

    #13133

    Hillel Coren
    Keymaster

    Have you tried using a negative rate when adding a tax rate?

    https://app.invoiceninja.com/tax_rates/create

    #15589

    gerry
    Participant

    Hi Guys,
    I just wanted to add my two cents to this topic. I work in Spain and as John has already stated, there is a “negative” tax here in Spain called IRPF. To keep it simple, you can think of it as a discount (it works by subtracting a specified percentage from the total). As John states, there are different rates of IRPF (21%, 7%, 12%, etc). From the moment I deal with only two different rates (21% and 7%). For the moment updating the “Discount” label to reflect each rate on the printed invoice is OK for the time being but I would like to if there are plans to include a new type of Tax in the application?

    The logic works exactly like how the “Discount” option works. It would be really helpful to have this option available in future releases.

    Here is an example of what I have done (renaming the “Discount” label):

    https://www.dropbox.com/s/e7gi5nkyzfhdze7/InvoiceNinjaIRPF.pdf?dl=0

    #15590

    gerry
    Participant

    Update. There is a mistake on the sample invoice I included.
    I added a 10% discount instead of 15% when creating the invoice.

    #15594

    Hillel Coren
    Keymaster

    When you say “plans to include a new type of Tax in the application” do you mean plans to add support for negative tax rates?

    #15597

    gerry
    Participant

    Hi,
    Exactly. A negative tax rate that “behaves” exactly like the current “discount” option. This negative tax is called “IRPF”. Here is some info regarding this type of tax:

    The IRPF (Spain’s Income Tax) for freelancers

    #15598

    Hillel Coren
    Keymaster

    Ok, feel free to create an issue on GitHub to track the request (assuming there isn’t an issue already).

    #20962

    ant.galanis
    Participant

    Hello all,

    I’m from Greece and have the same issue.
    Have you guys resolved this?

    Thanks

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