In this article, you will find important information on how the increase in the general VAT rate on 1st September 2024 will impact your invoicing.
Employment benefits are not subject to VAT, so the tax change in Smartum invoices will only apply to the service fee or any equivalent commission portion. Whether the VAT rate change affects your invoicing depends on whether your account operates on a pre-paid or post-paid basis.
Post-paid accounts
If your account is post-paid, you do not need to take any action. Our system will automatically generate an invoice on the first working day of the month in accordance with the VAT rate in effect at that time.
Pre-paid accounts
If you pay for your benefits in advance, you have two options:
- Pay your invoice by 27th August 2024, and you can forget about the whole issue. This will ensure that the payment is recorded in our account before the end of the month. Please note that the payment must leave your company’s bank account by 27th August 2024 at the latest, regardless of the invoice due date.
- Due to updates required for the VAT change, invoice generation will be paused in our system between 28th August and 1st September. During this time, the benefits you order will still be released for use as normal, once the invoice we send on 2nd September 2024 is paid and the payment is reflected in Smartum’s account.
If your invoice is due on or after 28th August 2024 and you wish to pay on the due date, there’s no need to take any action just yet. You’ll receive an invoice from us on 2nd September 2024, reflecting the new VAT rate of 25.5%. In addition, we will issue you a credit note for your previous invoice.