Q: Why is my invoice calculating VAT incorrectly?
A: Rounding affects the total VAT amount. VAT can be calculated on the invoice total or per charge line. The method is set under CONFIGURATION > Accounting, usually during initial setup, and it cannot be changed after setup. Missing customer data, such as an address or VAT number, makes the system default to "No VAT".
Q: How can I adjust VAT, or set a default VAT, in Qargo?
A: VAT is set per charge on the rate card (Rates > Rate card customers), per cost rate for subcontractor orders (Rates > Cost calculation trip), and per customer through the Tax type in the customer's billing config. See "Setting Default VAT Settings" below.
Calculation options
Calculate VAT on invoice total: sums all charge lines, then applies VAT. This avoids rounding discrepancies.
Sum VAT per charge line: rounds VAT to 2 decimals on each line. This can cause minor variances.
These methods can result in small differences in VAT totals. For example, calculating VAT on the invoice total avoids rounding discrepancies, while summing VAT per charge line may introduce minor variances due to rounding each line individually.
Which option to select may be determined based on the accounting package used, as the rounding may impact matching how they calculate.
Once configured reach out to the Qargo Account Manager for any changes.
If you are getting any type of "errors" while posting invoices, please contact our support team via chatbox. To prevent VAT-related errors, always ensure customer address and VAT number details are completed before creating orders. Regularly review rate card settings to confirm VAT configurations align with applicable tax regimes, and consider conducting periodic audits to identify and correct discrepancies early.
Banker's rounding: Qargo uses banker's rounding (round half to even). For example, 275.006 becomes 275.00. Variances grow with multiple charge lines.
Causes of VAT-Related Errors
Qargo sets automatic VAT (tax type and VAT %) using a "most specific data wins" approach. Order countries drive the decision, and manual overrides take precedence.
Inputs, in order of preference:
Goods origin and destination countries (if filled in). For container import/export, these replace pickup and delivery.
Otherwise: pickup & delivery countries on the order, if goods origin or destination is blank.
Customer or subcontractor country: uses the VAT number first, then the billing location.
Steps to Correct VAT Errors
Add Missing Customer Information
Navigate to the customer's record in Qargo and ensure their address and VAT number are filled in.
Review the customer profile settings, particularly the "Apply VAT Exceptions for Import/Export" option. Disable it if manual charge tax configurations should take precedence.
If the issue exists in an existing order, edit the order directly and manually update the VAT on each order line where needed.
Adjust Rate Card Settings
Find the rate card linked to the affected charge.
Update the VAT configuration in the rate card to apply 0% VAT if the job or charge qualifies for VAT exemption.
For the full steps to change VAT on a rate card, see "Setting Default VAT Settings" below.
Manually Set VAT on Specific Charges
Open the order and find the charge.
Disable "Set VAT automatically."
Manually set VAT to the correct percentage or 0%, as required.
Fix Line-Specific Discrepancies
Open the invoice.
Locate the lines that need correction.
Click the pen/edit icon and adjust VAT values directly on each relevant line.
Correcting VAT on Posted Invoices
Posted invoices cannot be recalculated. To fix VAT:
Create a credit note for the incorrect invoice.
Correct VAT on the underlying orders or charges.
Reissue the invoice with the corrected VAT.
The credit note page has a Re-invoice charges option for step 3. See Re-invoicing credit note charges.
Incorrect VAT on Manual Costs
Manual costs without a VAT rate cause wrong totals. To solve this:
Open the invoice and find the manual costs.
Assign the correct VAT rate to each manual cost.
Save and reissue the invoice.
Setting Default VAT Settings
Where can a default VAT be set?
In three places: on the rate card (customer charges), on the cost rates (subcontractor orders), and on the customer (tax type).
How can I adjust VAT on a rate card?
From the menu
Navigate to Rates > Rate card customers.
Open the rate card to change. Rate cards are grouped by transport service.
In the Prices table, click the edit (pencil) icon of the charge.
Under Per billing entity configuration, select the VAT % (for example, VAT 20%, VAT 5%, VAT 0%, No VAT or Transit) and click Save.
From an order
Open the order.
In the header line of the order, next to Customer price, click the rate card name. The rate card opens.
Adjust the charge as described above.
For this order only: the VAT field next to the rate card name (pencil icon) changes VAT on the order itself, without touching the rate card.
How can I set a default VAT for subcontractor orders?
Go to Rates > Cost calculation trip.
Open the Subcontractor rates tab.
Open the cost rate list (for example, the default list for subcontractors).
In the Prices table, click the edit (pencil) icon of the charge.
Under Per billing entity configuration, select the VAT % (for example, 20%).
Click Save.
Result: the rate applies automatically to all newly created subcontractor orders. VAT no longer needs to be selected manually on each order.
Required field: a VAT rate is mandatory on every cost or charge line. See FAQ - VAT on purchase invoices.
How can I set a default VAT for a specific customer?
Create or select a dedicated rate card for the customer (Rates > Rate card customers). Use Link new customer on the rate card to link the customer.
Open the rate card and set the VAT % on every charge line, as described above.
Open the customer (Companies > Customers). Under Billing config, check the Tax type (VAT, Intra EU (reverse charge), No VAT, Transit, UK Reverse Charge, Co-contracting or Other) and the Apply VAT exceptions for import/export toggle.
Future orders for that customer use the VAT % of their rate card, unless the tax type or the VAT exceptions override it. Existing orders keep their VAT. Edit the order to change it.
An Intra EU or No VAT tax type overrides the rate card.
Best Practices to Prevent VAT Errors
Proactively fill in customer details: complete the address and VAT number before creating orders.
Verify rate card configurations: review them regularly. Misconfigured rate cards are a common cause.
Conduct periodic audits: check invoices and orders routinely.
Test VAT configurations: create test orders and verify the calculated VAT.
Timing: automatic VAT is set when an order is created or when the customer or subcontractor changes. It does not recalculate if pickup or delivery changes later.