This article provides a list of features available to auction companies using Wavebid outside the United States. An auction company will need to be granted access to international features before they can be used in Wavebid. To request access, please contact email@example.com.
This article contains the following sections:
- User and Company Setup
- Using VAT in an Event
- Margin Scheme
- International Export
- Seller Settlements (Vendor Invoices)
User and Company Setup
For auction companies located in the UK, users should set their Locale to English GB. This selection determines the currency value they see, as well as the spelling of some words in Wavebid (ex. cheque vs. check). This also ensures that the user sees references to "VAT" rather than "tax". For more information on updating user profiles, see User Accounts and Permissions.
Companies will need to have their locale set by a Wavebid Administrator in order to utilize international features. To confirm that the Company locale is correct, please contact a Wavebid Administrator at firstname.lastname@example.org.
Companies using VAT must enter their VAT # at the company level in order for VAT to be calculated correctly. To do so, navigate to My Links > Company > Profile. After entering the VAT #, click the Disk icon in the top right corner of the page to save the changes. VAT will not function if this field is left blank.
Using VAT in an Event
There are 3 steps that must be taken to ensure VAT is calculated correctly in an event:
- A VAT # must be added at the company level.
- The VAT code and percentage must be added to the event.
- A VAT # must be added to each seller during seller check-in.
When creating the event, a currency must be selected. This impacts how taxes are displayed, regardless of which user is viewing it. This also impacts the currency displayed on invoice emails. To select/edit a currency, navigate to the applicable auction from the Dashboard, then select Auction > Edit Settings. Then, use the Country- Currency drop-down to select a currency and click the Disk icon in the top right corner of the page to save the changes.
Adding VAT to an Event
Auction companies can enter the VAT % for the event by navigating to Auction > Edit Settings and clicking on the Accounting tab. Enter the VAT % and the VAT Code. The VAT Code field is a free form text field with a 16 character max. Click the Disk icon in the top right corner of the page to save changes.
Adding VAT to a Seller
Auction companies can apply VAT to sellers via Seller Settlements, just as invoices apply VAT to buyers. To do so, the seller's VAT # must be entered when checking the seller into the sale. This field cannot be left blank if the auction company wants to calculate VAT properly on that seller's lots.
What Is a Margin Scheme?
The margin scheme is used as a means of reducing the possibility of double taxation on the sale of second-hand goods. Margin schemes are unique to the UK. The UK has the option to operate under the margin scheme which allows them to only pay taxes on the difference between what they bought the item for vs. what they sold it for.
However, if the auction company is charging a taxable Buyer's Premium, the BP (but not the hammer price) will still be taxed under the margin scheme.
If the auction company is not operating under the margin scheme, they pay taxes on what they sold the item for.
If a auction company is using the margin scheme, they cannot show tax/VAT on the line items on the invoice (see below) because it is considered part of the sale price.
Enabling/Disabling the Margin Scheme
Auction companies can enable or disable the margin scheme on an event by taking the steps below:
- Navigate to the applicable auction from the Dashboard, then select Auction > Edit Settings.
- Click on the Accounting tab.
- Check or uncheck the Margin Scheme? box located on the right side of the page under the Taxes section.
- Click the Disk icon in the top right corner of the page to save the changes.
The margin scheme can also be turned on or off of specific lots (or all lots) at the invoice level:
- Navigate to the applicable invoice.
- Check the box to the left of the applicable lots(s).
- Select Change Margin Scheme of Selected Items from the Actions drop-down located on the left side of the invoice.
- A pop-up window will open. Use the drop-down to either Enable or Disable the Margin Scheme and then click the Change Margin Scheme button. VAT will be added or removed accordingly.
International invoices display VAT at the line level, unless they are operating under the margin scheme. If an auction company is using the margin scheme, they cannot show tax/VAT on the line items on the invoice because it is considered part of the sale price.
Example of an invoice with the margin scheme disabled.
Example of an invoice with the margin scheme enabled.
Displaying Buyer's Premium Tax
International invoices will always display the Buyer's Premium tax separately, regardless of the Invoice Settings.
Pro Forma Invoices
Please note, Wavebid does not currently offer pro forma invoices, though users may be able to Form Builder to generate a document serving the same purpose.
Self Billing Invoices
Wavebid does not currently offer 'Self Billing' invoices, though users may be able to save their Seller Settlements as PDFs and then alter them as needed using a PDF editor.
To do so, navigate to the Seller Summary page for the event (Auction > Accounting > Sellers), click the Printer icon in the top right corner of the page, and select Print Seller Invoices. A new window will open where the Seller Settlements can be saved as PDFs.
During bidder check-in (registration), an International Export checkbox will be visible to the right of the Invoice Notes field. This box should be checked to indicate that the bidder is going to export all of the lots they purchase.
If the bidder is marked as being an International Export, they are VAT exempt (VAT will appear as 0.00). UK laws state that this must be clearly indicated on the invoice. As such, bidder's marked as being International Export will see the "International Export" text appear in the header space on their invoice.
International Export can also be added/removed at the invoice level. To do so, navigate to the applicable invoice and then select Mark Invoice as International Export (or Remove International Export Status) from the Actions drop-down on the left side of the page.
A pop-up window will open. Click the Change Status button to continue. The invoice will update accordingly.
VAT Exempt vs. International Export
Bidders that have been marked as being VAT Exempt during check-in (registration) will not be charged VAT. VAT Exempt buyers will not have the "International Export" text appear on their invoice.
Example of a VAT Exempt invoice.
Example of an International Export invoice.
Tracking International Exports
The INT column can be added to the Invoices Page so that auction companies can easily see which invoices have been marked as being International Exports.
Seller Settlements (Vendor Invoice)
Seller Settlement vs. Vendor Invoice
For international auction companies, the Seller Settlement is referred to as the "Vendor Summary" or "Vendor Invoice". As such, the Process Seller Settlement checkbox (Auction > Edit Settings > Invoices tab) will now appear as Process Vendor Invoices. For more information relating to turning Seller Settlement processing on and off, see Seller Settlements.
The Process Buyer's Premium for Vendors box should be checked if the auction company would like to have the Buyer's Premium display on the Seller Summary page. For more information relating to the Seller Summary page, see Seller Settlements.
Checking the Process Buyer's Premium for Vendors box does not charge the seller a Buyer's Premium, it just provides the option of having the Buyer's Premium that was charged to the buyers be displayed on the Seller Summary page via the Columns button. The Buyer's Premium cannot be added to individual Seller Settlements (Vendor Invoice/Summary), just the Seller Summary page.
VAT that has been applied to seller commissions can be viewed in the COMM VAT field which can be added to the Seller Settlement (Vendor Invoice/Summary) via the Columns button.
In order for VAT to be applied to seller commissions, the VAT # must be entered under the Company Profile, the seller must be charged a commission, and the seller cannot be marked as being 'VAT Exempt'.
VAT Summary Table
At the bottom of the Seller Settlement (Vendor Invoice/Summary), a VAT Summary table will display in addition to the standard Auction Summary table.
VAT is Incorrectly Showing as 0.00 on the Invoice
If VAT is not calculating correctly on an invoice and is instead displaying a VAT of 0.00, verify the following:
- Margin scheme is not enabled for the lots/invoice.
- The bidder and/or invoice has not been marked as an International Export.
- The bidder is not registered as VAT Exempt.
- The seller associated with the lots has a VAT #.
- A VAT # has been entered at the company level.
The Invoices Page may need to be refreshed to ensure changes are reflected on the invoice.
Currency is Showing GBP Rather Than the Pound Sign
Confirm that both the Company locale and User locale are both English- GB. To confirm that the User locale is correct, navigate to My Links > User > Profile and select the User. If needed, update the Locale field and then click the Save button. The User will need to log out of Wavebid and log back in to see changes.
To confirm that the Company locale is correct, please contact a Wavebid Administrator at email@example.com.
Commission is Not Being Taxed on Seller Settlements
- Confirm that a VAT # has been entered under the Company Profile.
- Confirm that the seller's contract contains a commission rate.
- Confirm that the seller is not VAT Exempt.
- To do so, click on the Seller Settlement.
- Click on the Edit Contract link below the seller's name. A new page will open.
- Click the Edit link to the right of the seller's name.
- Uncheck the VAT Exempt box.
- Click the Disk icon in the top right corner of the page to Save.