In Sweden, accounting for international purchases of goods and services can get tricky. Indeed, per Swedish legislation, the purchaser becomes liable to apply the VAT when purchasing in other countries if the vendor didn’t themselves apply any VAT. The vendor, on the other hand, can choose to mark the invoice as being eligible for reverse charge VAT. In such cases, the Swedish purchaser must add an outgoing VAT to the purchase and apply an input VAT equal to the outgoing VAT.

Until today handling international purchases in Pleo for Swedish customers was complex, as we didn’t allow them to specify a purchase as needing reverse charge applied.

Now we do. In order to account for reverse VAT in Pleo, admins simply have to set up reverse tax codes in Pleo (in settings, under Accounting) and pair this tax code with whatever category/subcategory makes sense in Pleo. When this category/subcategory is applied to an expense, we will export the reverse VAT alongside it.

More information on how to set up this feature can be found here.