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Artefacts - Breaking changes coming with end of Brexit transitional period to the Accounting API

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Invoices cannot contain a mixture of goods and services

Under certain circumstances, invoices, quotes, estimates, credit notes, corrective invoices in Spain and recurring sales invoices cannot contain a mixture of goods and services item lines

Rule applies in the following scenarios:

  • GB VAT Registered business selling to an EU non VAT registered business

  • EU VAT Registered business selling to a GB non VAT registered business

Irish postponed accounting

If you import goods into the EU from the rest of the world, you can use postponed accounting to deal with import VAT.

Financial settings

If a business is using the scheme, a flag on the financial_Settings endpoint called postponed_accounting is available and will be set to either a true or false value.

e.g. GET /financial_settings

{
  "$path": "string",
  "year_end_date": "2020-11-30",
  "year_end_lockdown_date": "2020-11-30",
  ...
  "postponed_accounting": true,
  ...
}

Rules for using postponed accounting on purchase artefacts

Purchase invoices and credit notes for Irish, Northern Irish and GB businesses purchasing from Rest of World suppliers, or suppliers who are Import Agents and are not using Postponed VAT

  • For item lines which are EU Services, the VAT Rate is selectable but the VAT Amount will be 0.00

Purchase invoices and credit notes for Irish, Northern Irish and GB businesses purchasing from Rest of World suppliers or supplier who are Import Agents, who are using Postponed VAT

  • For item lines which are EU Goods, the VAT Rate is selectable but the VAT Amount will be 0.00
  • For item lines which are EU Services, the VAT Rate is selectable but the VAT Amount will be 0.00

Flag on purchases from EU under £135

Purchase invoices and credit notes

On purchase invoices and credit notes, there is a new vat_exempt_consignment flag to indicate when consignment values are under £135 and you have agreed with your supplier that you will account for VAT on your VAT return using Reverse Charge

Conditions required for flag to be set as true:

  • GB business purchasing from EU supplier where consignment value is < £135

  • GB business purchasing from Rest of World supplier where consignment value is < £135

If the required conditions are not met and the the flag is set to true, the flag will be ignored.

e.g. GET /purchase_invoices/<invoice id>

{
"purchase_invoice": {
  "contact_id": "string",
  "date": "2020-11-30",
  "due_date": "2020-11-30",
  "postponed_accounting": true,
  "cis_applicable_amount": 0,
  ...
  "vat_exempt_consignment": true,
  ...
}

Required artefact parameters

Depending on where the business you integrate with is located, as well as the contact you are using on the artefact, the required parameters will change. The grid below explains when certain parameters are required.

Business address based in EU

Required parameters
Business location Transaction type Contact location Contact Vat registered? eu_goods_services_type_id required? Zero rated tax? eu_sales_description_id required?
DE Sales GB Yes No No No
DE Sales GB No No No No
ES / FR Sales GB Yes FR = No ES = Yes Yes No
ES / FR Sales GB No Yes Yes for goods / No for services No
DE Sales NI Yes No - N/A No - N/A (linked to LA) Yes
ES / FR Sales NI Yes Yes Yes Yes for goods / No for services
DE Sales NI No No - N/A No - N/A (linked to LA) No
ES / FR Sales NI No No No No
DE Purchase GB Yes No - N/A No - N/A (linked to LA) N/A
ES / FR Purchase GB Yes Yes Yes for goods / No for services N/A
DE Purchase NI Yes No - N/A No - N/A (linked to LA) N/A
ES / FR Purchase NI Yes Yes No N/A

Business address based in GB

Required parameters
Business location Transaction type Contact location Contact Vat registered? eu_goods_services_type_id required? Zero rated tax? eu_sales_description_id required?
GB Sales EU Yes Yes Yes No
GB Sales EU No Yes Yes for goods / no for services No
GB Sales NI Yes No No No
GB Sales NI No No No No
GB Sales ROW N/A Yes Yes No
GB Purchase EU Yes Yes No N/A
GB Purchase NI Yes No No N/A
GB Purchase ROW N/A Yes No N/A

Business address based in NI

Required parameters
Business location Transaction type Contact location Contact Vat registered? eu_goods_services_type_id required? Zero rated tax? eu_sales_description_id required?
NI Sales EU Yes Yes Yes Yes for goods / No for services
NI Sales EU No Yes No No
NI Sales GB Yes No No No
NI Sales GB No No No No
NI Sales ROW N/A Yes Yes No
NI Purchase EU Yes Yes No N/A
NI Purchase GB Yes No No N/A
NI Purchase ROW N/A Yes No N/A

Business address based in ROW

Required parameters
Business location Transaction type Contact location Contact Vat registered? eu_goods_services_type_id required? Zero rated tax? eu_sales_description_id required?
ROW Sales GB Yes No N/A No
ROW Sales NI Yes No N/A No
ROW Purchase GB Yes No N/A N/A
ROW Purchase NI Yes No N/A N/A
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