Tax exemption reason in sales taxes and charges

Hi folks,

First of all, thank you for your awesome ERPNext. I’m based out of Italy, and as you know being in EU, the tax seems a bit daunting with ERPNext. We have to ship some free parts to another EU country and to the USA. Due to reverse charge mechanism, any B2B shipments do not get charged. But I’m finding it very difficult to create an invoice for the transaction, which is needed with the shipping documents for export.

I’ve followed the procedure to create a tax rule, a tax category item tax template, sales taxes and charges tempate and still cannot get this working…

Here is what I keep getting:

BTW, I’m at version:

Installed Apps

ERPNext: v12.4.0 (version-12)

Frappe Framework: v12.2.0 (version-12)

Any suggestions?
thank you,

bump!!! Any feedback, any suggestion to help me correctly use erpnext to do this?

Configuring a tax rule should do the trick.
Can you post screenshots of your tax rules?

Hi @Manan_Shah,

Thanks a lot for the response. My tax rule is below:

The esporto -NA is below:

Hi @nash

  1. What is the condition on which you want ERPNext to apply the Esporto template?
    From you screenshot it looks like you have configured a rule to trigger the Esporto template if the Billing and Shipping Country are Portugal (which ERPNext picks up from the Billing and Shipping Address of the Customer).
  2. If you want to trigger Esporto template for B2B customers, one way to configure that is create a Customer Group B2B and set a Tax Rule on this condition
    Also it would help if you post screenshots of what selections you are making on the Sales Invoice which is triggering the error that you have posted.

Very difficult to help from a few screenshots, please try to be as thorough as you can in order to reproduce the issue and figure out how to help.

Hi @Manan_Shah,

The problem is due to the Italian charts of accounts. I’ve figured out why it was not working till the taxes, now it is demanding a payment terms template and that is extremely daunting. After preparing the payment terms template, on submit, ERPNext does nothing, and does not move towards a submitted Invoice.

I’m pasting the payment terms drilling down into with each page hope this helps you to figure out what is wrong:

EU Reverse Tax is very simple to implement
I live in NL and buy in Germany.
Here an old link where I explain the principle…I have never changed this set-up since 2011.


Hi @nash
So do you mean that the Tax Rule is getting applied and the tax rate of 0% is applied successfully?
Now the problem you are facing is with regards to Payment terms? Is there an error that you are getting on submitting the invoice?

Hi @Manan_Shah,

That is correct. The tax rule is being applied. I see 0% there, but there seems to be an issue with the Italian COA and the e-invoicing that was installed as I’d chosen to configure the location to Italy. Then yesterday, after getting foxed why the submit button didn’t give any response, I began searching. The real culprit is that the e-invoicing is either not working or unfinished or didn’t get into the Version-12. All these errors are coming from that.

@becht_robert Thanks a lot for your feedback. I had already read your posts… the problem is a bit different. In Italy we’ve been forced by the government to do e-invoicing for ALL B2B transactions. That means that it is not enough to just do a VAT calculation internally, it should also be reported to the tax authorities. Actually, we do not need to send a B2B invoice to the supplier, we are required to submit the invoice to the tax dept using e-invoicing and the supplier gets his invoice from the tax dept directly using his/her e-invoicing.
So the problem arose when I installed e-invoicing. It is a very commendable effort by @mascor but its failing to enable a submit of the invoice and the earlier error also was something that came out from the e-invoicing interface which does not allow “0” VAT on anything.

Still unresolved, but I appreciate your responses.

Thanks a lot,

Hi @nash
You can try to look for the error in your browser console when you click on the Submit button.
You can then try looking for that error on the forum to get more help.

Hi @Manan_Shah,

Thanks for that tip. The result is here. I checked the file sites/assets/frappe/js/lib/jquery/jquery.min.js

but its a list of commands, can you tell me where is the source of this?

Sorry unable to figure out.
Can you post the full traceback here?

hi @Manan_Shah,

The guys who wrote the italian tax plugin called me last evening and couldn’t figure it out either. So they now have a backup of my erpnext. I hope that they’ll figure out the bug…