Overview

Domestic, EU B2B, EU B2C or third country – Kyvento determines the correct tax rate and the statutory invoice notes automatically from your tax configuration and the customer data. This article explains the logic behind it.

The basis: your tax configuration

The basis is the tax wizard under "Settings" → "Tax rules" (country of establishment, customer segments, EU/third-country sales, tax status). Without a completed configuration, transactions are blocked – Kyvento would rather issue no invoice than a wrong one.

How Kyvento decides for each invoice

For each invoice, Kyvento checks in a fixed order:

1. Small-business scheme (Section 19 of the German VAT Act)? → all invoices without VAT, with a mandatory note
2. Third country? → 0% (export or non-taxable service), with a note
3. Tax-exempt product category (Section 4)? → 0% with the exemption reason
4. Special cases – e.g. Monaco (French rate) or Northern Ireland
5. EU B2B, physical supply → intra-Community supply (Section 6a), 0%
6. EU B2B, service/digital → reverse charge (Section 13b), 0% with a note
7. EU B2C (or B2B without a qualified VAT ID) → OSS: the tax rate of the destination country
8. Otherwise → the standard tax rate of your country of establishment

The appropriate mandatory note (reverse charge, Section 6a, Section 19, export, OSS …) is frozen immutably into the invoice on finalization.

The "qualified" VAT ID

Reverse charge and intra-Community supply require a verified customer VAT ID: Kyvento validates the format immediately and additionally checks the ID live against VIES (the EU confirmation procedure) – automatically after every change to the customer and regularly in the background. As long as confirmation is pending or fails, Kyvento bills as B2C (OSS) to be safe; alternatively, the account owner can confirm the ID manually.

The small-business scheme in detail

With the tax status "Small business, Section 19 of the German VAT Act", all outgoing invoices show 0% – with the note "No VAT charged pursuant to Section 19 of the German VAT Act". If you later switch to standard taxation, Kyvento actively points you to the affected invoices from the key date onwards.

Next steps

• Customize the note texts – see "Invoice texts and languages"
• Prepare the advance VAT return – see "Preparing the advance VAT return"