One of the questions we get asked often is: 'Why is there no mention of VAT on my credit note?' Let's look into this a little further!
The tariff for consumed energy is usually discussed with your employer. E-Flux prepares a monthly invoice in which you bill us for your energy consumption. We call this a self billing invoice and on this self billing invoice is no mention of VAT. This has to do with the fact that, as an individual, you are unable to levy VAT on a company. That's why the tariff that is decided upon along with your employer should be your full rate, including taxes. E-Flux will then charge your employer the amount on your self billing invoice plus VAT. Your employer can then charge back this VAT.
- You and your employer have decided upon a tariff of €0,25 per kWh and you have charged 1000 kWh over the last month.
- E-Flux prepares a self billing invoice to E-Flux in your name for €250,00 and credits this amount at the end of the month.
- E-Flux then sends your employer or the provider of the charge card that you utilised while charging a bill for € 250,00 excl. VAT (€ 302,50 incl VAT).
- Your employer or the provider pays the bill. Your employer can then charge back the VAT from the tax authorities.
- E-Flux pays the VAT to the tax authorities.
Are you an entrepreneur and is your company exempted from paying VAT? Then you're unable to charge back your VAT. This means that you'll pay around 21% more. In this case you'll do best to export a list of your charges from your E-Flux dashboard and charge the VAT to your company. This way you don't pay more and your books remain tax proof!