VAT rates in use
VAT codes in use
Modifying VAT codes
Deleting VAT codes
Before creating a chart of accounts for Sales Invoices, decide whether to use VAT codes or VAT rates in the Sales Invoices. Also, consider the requirements of the basic system!
VAT rates in use
If VAT rates are used in the Sales Invoices, the VAT rates must also be defined in the chart of accounts to be created. The VAT rate must also be provided in the product information.
NOTE! We always recommend using VAT codes.
VAT codes in use
The basic system's accounting affects whether VAT codes are created for Sales Invoices or not. If VAT codes are used in the Sales Invoices, the VAT codes must be created before creating the chart of accounts.
- Create VAT accounts (Settings - Accounts - Create new account) and Save as new.
- Create VAT codes corresponding to the basic system (Settings - VAT codes) and Save as new.
Enter the VAT code in the field for the corresponding VAT rate.
Enter the VAT rate in the field for the corresponding VAT code.
Write a description for the VAT code, such as VAT on purchases or VAT on sales.
Select the VAT account number from the drop-down menu for VAT account. The VAT account must be created first in the Settings - General - Accounts tab.
Tax category code - Tax category code S is for normal domestic sales. If the VAT is 0%, the program sets the default tax treatment code to Z if no VAT code is defined on the invoice line or there is no tax treatment code behind the VAT code. If, for example, VAT codes for intra-community sales are used, the tax category code must be changed to the correct one.
Tax category reason code and Tax category free text - For codes other than tax treatment code S, either a tax treatment reason code or a tax treatment description must be used.
For more information on using tax category codes, tax category reason codes, and tax category descriptions, see here.
- Create other accounting accounts and assign VAT codes to the necessary accounts (Save changes) or import the accounts as a CSV file to Sales Invoices (Settings - Accounts - Maintaining records).
Modifying VAT codes
- Click Settings - VAT codes
- Double-click the VAT code to be modified
- The selected VAT opens in the lower part of the window, in edit mode
- Save the changes with the Save changes button.
Deleting VAT codes
- Click Settings - VAT codes
- Select the VAT code to be deleted by clicking the VAT row -> the selected row turns blue
- Click the Delete selected button -> the selected VAT code is deleted.