The remittance system in the VAT4U platform helps track money flow for transactions and tax refunds when issuing invoices. This guide explains how remittance documents work and how to use them effectively.

What is a Remittance Document?

A remittance document provides a clear overview of money transfers related to VAT refund claims. It follows the principle of "one claim, one refund, one invoice, one remittance." This system ensures proper tracking of funds between tax administrations, the VAT4U platform, and clients.

There are two main types of remittance documents:

• Standard Remittance Advice (RA): Appended to the invoice sent to clients
• Rebooking Remittance (RR): Used for internal account transfers

How Remittance Documents Are Generated

When creating an invoice in the invoicing module:

1. Choose a company and add line items
2. Link the invoice to a specific claim
3. Click "Generate Remittance Document"
4. Select the appropriate accounts:
   • Internal rebooking account (for the company issuing the invoice) = billed by
   • Client payout account (where tax administration funds are sent) = billed to
5. Choose whether to append the remittance to the invoice

Understanding Remittance Flow

Remittance to the Client

• This is the money transferred to the client after VAT4U has taken their fee
• It's calculated as: refund amount in euros minus the brutto (gross) amount of the invoice
• The client receives a "Remittance Advice" (RA) document showing this calculation
• This document can either be appended to their invoice or sent separately
• It contains details about the claim, refund date, amount received from tax administration, invoice details, and the final amount to be transferred to the client's bank account

Remittance to VAT4U (or Service Provider)

• This is called a "Rebooking Remittance" (RR)
• It represents the fee that VAT4U (or any company using the system) earns for their services
• The money is transferred to an internal account (referred to as the "00" account or internal rebooking account)
• This internal account cannot be used for claims - it's only for internal money transfers
• The rebooking remittance document shows the invoice details and the brutto amount that will be transferred to the internal account
• This document is only issued to the company that is issuing the invoice (not to the client)

Understanding the Remittance Content

A standard remittance document includes:

• Remittance number (same as invoice number with "RA" prefix)
• Date (same as invoice date)
• Client information
• Claim ID, country of refund, and claim period
• Bank refund details from the tax administration
• Calculation of funds to be transferred to the client (refund amount minus invoice amount)
• Client's bank account details

The rebooking remittance document includes:

• Remittance number (same as invoice number with "RR" prefix)
• Date (same as invoice date)
• Invoice details
• Amount to be transferred to internal accounts

Bank Account Configuration

When setting up bank accounts in the system:

• Regular accounts used for claims should have the "Allowed for claims" checkbox selected

• Internal accounts (used only for remittances) should leave this checkbox unchecked

Additional Features

• Proof of payment documents can be attached to claims;
• These documents can optionally be appended to invoices
• Remittance documents are generated as HTML files and then converted to PDF.

Who Can Use This Feature?

The remittance system is available to all VAT4U experts and franchise companies using the invoicing module. It's designed to provide transparency in financial transactions for all parties involved in the VAT refund process.