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
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.
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:
I hope you understand this explanation 
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?
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
It seems to work for me, are you seeing a problem?
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
Using a negative tax rate seems to work, what am I missing?
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.
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
Have you tried using a negative rate when adding a tax rate?
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
Update. There is a mistake on the sample invoice I included.
I added a 10% discount instead of 15% when creating the invoice.
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?
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:
http://selfemployedinspain.com/paying-irpf-income-tax/
Ok, feel free to create an issue on GitHub to track the request (assuming there isn’t an issue already).
Hello all,
I’m from Greece and have the same issue.
Have you guys resolved this?
Thanks
Hi there,
The problem with the IRPF tax is not solved. I’d tried to use the negative tax, but it doesn’t as it should.
The invoice must have, for a freelancer in Spain, the following items:
The tax base, that is the total of the invoice without any tax, for instance, 1.000 €
With the tax base we can calculate the VAT tax, that in Spain is 21%. So we have that the VAT is 210 €.
To calculate the IRPF we do the same as with the VAT. We calculate 15% on the taxable base of 1000€. So we have that the IRPF is 150€.
To calculate the invoice total, we add the taxable base (1.000€) plus VAT (210€) and subtract the IRPF (150€).
So the operation is 1.000€ + 210€ -150€ = 1060 €
What is important is that there must be a line showing the IRPF total.
The result on the invoice would be as follows:
Taxable base ______ 1.000€
VAT ______________ 210€
IRPF _____________ 150€
Total due __________1.060€
This way the self-employed person knows the total amount he has to pay to the tax authorities for VAT, the company knows what he has to withhold from the invoice for the payment of the IRPF and also knows what he has to pay in total for the work.
You’re app is amazing and incredibly usefull for all kind of little company. If you can make this changes on the invoices will unbeatable for the feelancer market.
Hi, are you using v4 or v5?