The VAT rate does not match the region or the type of transaction

Symptom

On a draft invoice, the Taxes column of a line has a rate that is not the one you expect for the region or the type of transaction, or fiscaldoo refuses the invoice when you click Confirm.

Message

With two VAT rates on the same line:

“Line "[SERV] Serviço genérico" of the invoice to Construções Marão, Lda has 2 VAT taxes (VAT or "not subject") — exactly one is allowed per line. Fixed-amount special taxes (e.g. an eco tax) must use a non-VAT tax type, not a second VAT tax.”

With a reverse charge rate (for example, 0% AUT construção (sem dedução)) on an invoice to a customer outside Portugal:

“Document FT D26/38 uses a reverse charge tax ("IVA - autoliquidação", CIVA art. 2.º n.º 1) but the partner is not established in Portugal (intra-community transactions and exports do not use domestic reverse charge). The reverse charge only exists between taxable persons established in Portugal: set a valid Portuguese VAT number on the partner, or use another tax.”

The invoice stays in draft. Today, the message shows the next number of the series, but that number is not kept for you and may go to another invoice.

With a margin scheme line, without a purchase price:

“Line "[SERV] Serviço genérico" of Rascunho de fatura is sold under the margin scheme but has no purchase price. What happened: VAT is charged only on the difference between the selling price and the purchase price (art. 4.º n.º 1 of Decree-Law 199/96), so the purchase price is needed. How to fix it: fill in “Purchase price (with VAT)” on the line.”

Verified causes

• The rate was added instead of replaced. The Taxes column accepts more than one rate: when you choose a second one, the first one stays. In the demo, the line ended up with 6% and 23%, and was only refused on confirmation.
• The list has rates from other regions. In a Mainland company, the line's list shows, besides 23%, 13% and 6%, the Madeira rate 22% MA and those for special transactions, such as 0% EU S and 0% EX S. The other regional rates are found by their abbreviation: MA also shows 12% MA, 5% MA and 4% MA, and AZ shows 16% AZ, 9% AZ and 4% AZ, for the Azores. Searching for the word “Açores” answers “No records”.
• fiscaldoo neither refuses nor warns about a rate from another region. With 22% MA, in a Mainland company and with a customer from Vila Real, the draft showed IVA 22% and 122.00 € on 100.00 €, and Confirm posted the invoice without any message about the rate. Once posted, the rate can no longer be changed.
• The rate does not change with the customer's region. With a customer from Funchal (postcode 9000-100), the line kept 23% and the invoice was posted that way. Whoever makes the invoice chooses the rate.
• Reverse charge only goes through with a customer established in Portugal. With a customer from the United States, the refusal above. With Construções Marão, Lda (Portuguese tax number (NIF)), the same rate was accepted, with IVA 0%.
• The margin scheme needs the purchase price. The Margin scheme and Purchase price (with VAT) columns are hidden: you choose them in the columns button, on the right of the lines header.

What to check

1. On the invoice line, the Taxes column: does it have a single rate?
2. In the totals, below the lines, the VAT percentage and amount, before you click Confirm.
3. On the customer, the country and the NIF, if you use a reverse charge rate.
4. Which rate you must apply. The article VAT rates and exemptions explains where the rate comes from, the rates of each region and the intra-community exemption.

How to fix it

1. With the invoice in draft, click the line.
2. Depending on the message:
   • Two rates or wrong rate: in the Taxes column, remove the extra or wrong rate and choose the right one.
   • Reverse charge: correct the customer, if the Portuguese NIF is missing, or choose another rate.
   • Margin scheme: fill in Purchase price (with VAT). With a selling price of 100.00 € and a purchase price of 60.00 €, a Margin VAT rate of 23% and VAT on the margin of 7.48 €, the notice becomes “Margin scheme (Decree-Law 199/96): the invoice shows no VAT. VAT on the margin of this document: 7,48 €”.
3. Check the totals and click Confirm. Posting took between 6 and 8 seconds in the demo, with 23% and with 22% MA: wait for the invoice number and do not click again.

If the invoice has already been issued, the rate cannot be changed: I cannot change an invoice already issued.

Pending validation by a certified accountant: which rate to apply when the company and the customer are in different regions, and in each type of reverse charge transaction.

Who does it: the Billing profile, with which these steps were done.

Expected result

The invoice becomes Posted, with a single rate on each line and the VAT in the total matching that rate. For example:

100.00 € invoice	Debit	Credit
22% MA (FT D26/34): 2111 Clientes gerais	122.00 €
721 Prestações de serviços		100.00 €
2433 IVA - Liquidado		22.00 €
Margin scheme (FT D26/38): 2111 Clientes gerais	100.00 €
721 Prestações de serviços		100.00 €
Separate entry (OD/2026/00104): 721 Prestações de serviços	7.48 €
2433 IVA - Liquidado		7.48 €

The rate from another region goes to the same account 2433.

When to contact support

• The line has a single rate and the two-rates refusal still appears.
• The right rate does not appear in the list.
• Confirm neither posts the invoice nor shows a message after a minute.

Information to send

• The company, the customer and the rate you expected.
• The full text of the message, copied from the screen.
• The profile you logged in with and the approximate time.