Feature Requests
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Credit Note in compliance with UK VAT legislation
Planned
The refund functionality in WHMCS 5.3.13 is not on accordance with UK legislation.
When a refund is issued, the system must generate a Credit Note with the following details:
- be headed ‘credit note’ or ‘debit note’ as appropriate and show clearly all the following details:
- the identifying number and date of issue
- the name, address and registration number of the supplier
- the name and address of the customer
- the reason for its issue - for example, ‘returned goods’
- a description which identifies the goods or services for which credit is being claimed or allowed
- the quantity and amount for each description
- the total amount credited, excluding VAT
- the rate and amount of VAT credited
- the number and date of the original VAT invoice - if you cannot do this (for example, because returned goods cannot be identified with a particular invoice), you must be able to satisfy us by other means that you accounted for VAT on the original supply
The current system of issuing a revised invoice contravenes UK VAT legislation and makes WHMCS unusable for UK VAT purposes when it comes to refunds.
The main issue I can see is that currently the date of the refund is not recorded as separate entry, neither is the reason for the refund nor is a unique number applied. The renaming of the document to "Credit Note" should be straight forward.
It is the responsibility of the payment provider to do this, not a billing system, WHMCS doesn't process any payments. Plus the invoice where you have added funds, the invoice will tell you that the invoice has been refunded along with the transaction ID of the payment gateway along with the total credited.
Payment processors deal with the gross figure, they do not charge VAT separately.
We deal exclusively with businesses and they need paper invoices and paper credit notes for audit purposes.
I agree with Mike
Renaming of the invoice to credit note is indeed straightforward and could be achieved with a simple template edit. The complexity is definitely in the other things you refer to. We would like to try and understand more about exactly what changes are required for this. Could you get in touch with our support team referencing this thread and asked to be put in contact with the development team so we can ask some further questions. Thanks!
I don't see that it's my place to advise you on this matter. I know enough to know that your system is not compliant but not enough to advise you on exactly what you need to do. You must have an accountant who can give you the necessary advice.
Incidentally, you ask me to contact the support team and asked to be connected to the development team. Why can't you contact me or at least give me an email address. Why should I have to run around the houses to help you to correct your software?
Also in Italy is necessary to do a credit note when a refunded has been done.
Also in Austria, Germany and so on...
When the latest release you have put Validation in place so the way we use to deal with credit notes cant be done.
Validation Error
Amount In cannot be less than zero.
The fee being entered must be less than the amount in value.
You need to put a patch to rectify this or allow admins to turn off that validation and also work on a credit note feature.
I agree with this feature and i also suggest WHMCS team to review the billing system in order to fully meet the European legal billing law.
Seriously, this hasn't been done yet??? What's so complicated?
I guess I'll just have to faff around and get my accountant to issue the credit note I need from SAGE.
We also require this for a number of our larger customers, please add this as soon as possible.
Anyone from outside the WHMCS circle would believe that they were perhaps a company based in America but they're not, they in bloody Milton Keynes and the VAT processing should have been fixed at launch but even after 12 months they're still "investigating". What sort of mickey mouse operation is this?
Plaese :-)
Any movement on this? Last comment was 9 months ago and it's marked "Investigating" - what is being investigated? Please WHMCS, ask us questions here if you need further input and lets get this important feature on the road!
Status changed to "Planned" - HURRAY! Thank you WHMCS Gods.
WHMCS, when will it move from 'Planned' to the next progression status?
This is a non-negotiable compliance document and a billing system is incomplete without it.
WHMCS, when will it move from 'Planned' to the next progression status?
This is a non-negotiable compliance document and a billing system is incomplete without it.
Also required in a lot of other EU countries, not only UK.
Any updates on this?
Any update on a release date for this please?
WHMCS 5.3.13 in planning 2 years ago - wow - it is against the UK legislation and WHMCS is not capable to make WHMCS compliant to common and valid law in the countries it is distributing WHMCS??? strange and for buyers of WHMCS a headache and probably even serious legal issue!
This has been a while, any news?
Any update??
Things are worse in v7 than before, because previously we could at least manually enter negative amounts into the invoice and then use our own template to produce a credit note. But now if you enter a negative amount in the invoice, the subtotal comes out as zero!
As a B2B supplier, VAT compliance is important to us and WHMCS has never been good at it. Now it's woefully lacking in this area. Please would you look at getting this implemented. As has been pointed out above, it's not a very tricky change that's required. I would be happy to discuss with the development team if it helps.
Hi,
We want to use WHMCS to issue invoices - but there are several problems with the way WHMCS is working now that are not inline with the law in our case.
In general there are several types of invoices and guidelines that we should implement in order to work legally:
As you can see there are things in the list above that works differently now in WHMCS.
There are several feature request regarding the issues above:
So the only things left out (if the above feature requests really do handles the relevant issues I mentioned) are:
So to sum it all up:
We need a way to make sure that each type on invoice is a standalone document with different sequential number and have a digital signature to make sure that this is the only original document and prevent us from changing it after issuing it and with the relevant labeling as original document or a certified copy of the original.
Thanks!
Ram
Hello,
This is not only very unfortunate but also sad when I notice this request is over two years old!
The status of this seems to be in "Planned" state but may I kindly request WHMCS to inform of what is planned and WHEN.
To be compliant with billing is a core feature and would not be something you should purchase a module for.
Thanks!
Kind regards,
Bhavesh
Wondering the same here, 2 years is a long time for something which is not optional but should be in any billing system.
Any udpate on this from WHCMS????
Note this isn't only UK VAT legislation, this is a European rule. For a UK company (as far as I know WHMCS is still a UK Limited) I would expect to at least follow local laws...
WHMCS, any chance of an update on this?
currently there is no reversed invoice in whmcs.
however a reversed invoice would be fine IF theres a reference to the original invoice and a reason.
however there needs also to be an transaction which is impossible in whmcs currently because negative transactions are not allowed (for no reason at all)
the correct way would be in case of a payment already odne to an invoice:
original invoice #100 - 500€ total.
transaction - payed by paypal 500. 1.1.2018
creditnote/reverse invoice #101 as described negative amoutns are totally fine amount: -500
transactions:
2.1.2018 payed to refundaccount / credits (in some legislations this has to be paypal)
notice that refund does not take place on the first invoice. the first invoice is with issuing and the transaction complete.
it cant be undone. refunding would be a new agreement covered with the creditnote. the payment for this is also only related to the new agreement.
also be aware it touches then credits which are a problem in itself.
as of 1.1.2019 every EU country has to handle credits without VAT and is not to be taxed until its used.
they have to be hold kinda like a bank or trust. (keeping those funds on behalf of the customer)
so best would be if credits are used just as any other payment method as a transaction. then we could use creditnote payments directly to credits - credit to paypal and vice versa and so on.
i really need credit note or negative bills like it was before. In France too we cannot just mess with existing invoices and change them. Invoice cannot be change when done. If you refund one you have to issue credit note. We used negative invoices but now it is Forbidden...
I think it's save to say that WHMCS isn't really bothered by this... since they haven't added it in the 3 years we are requesting it.
And them being a UK company as well!
In planned for years, still no news? Guys, we need this!
I am not sure if this will help as it's been 4 years since this was logged but is an urgent request from our billing department
This been planned for 5 years :) WHMCS v8 is on its way maybe we can expect something new?
You are thinking?
This procedure is similar in Spain. It is necessary!
If this has been 'planned' for 4 years I doubt adding another comment will make a difference, but this is also an accounting/legal requirement in New Zealand.
whole of Europa for that matter but hey ; why would whmcs implement it, its not like its a billing system or something. oh.. wait.
Hehehehe lol...
Status: Planned
Responsible: None
Way to go, WHMCS.
Dont hold your breath! I have been waiting for this feature literally for years and gave up on it! the planned status means absolutely NOTHING except to keepm the community quiet and stop them from bothering them about things they do not want to implement.
Yet some off-brand payment gateway noone has ever heard of gets 2 votes and goes straight to "in progress".
I wonder how many people have simply walked away from WHMCS because of this simple requirement they can't seem to comprehend!
I just can't comprehend that this only has 84 votes. It either means all other users are not actually businesses with business requirements. I guess its more important to get this voted up for more attention. 84 votes will not do that.
We had teh same issue, and used a third Party plugin to accomplish it.
They have your money, so they don't care, used to be a different product when I first started using it god only knows how many years ago, now they are not interested in what their customers NEED (not even want, but as its a requirement it is a NEED!)
Still until people stop using it due to the shortfall, they wont worry too much.
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