Operating principles
VAT calculation
Sending the VAT report to the tax authority
Manual submission of VAT report to the tax authorities
Correcting and resending incorrect data
Checking error messages retrospectively
No VAT activity notification
Marking VAT report as sent
In this instruction we will go through the general principles of VAT calculation in Heeros Accounting, as well as the actual VAT calculation process, related reports and the cancellation of VAT calculations.
Operating principles
The program allows for the selection of gross and net methods for handling value-added tax. In the gross accounting method, entries are recorded with tax included, and at the end of the month, VAT calculation is performed, where accumulated VAT is adjusted from the accounts. In the net method, the program adjusts the amount of value-added tax at the time of recording each transaction and records the transaction as a net amount along with the tax to the accounting account defined in the VAT code settings. In both methods, VAT is recorded in connection with periodic tax reporting to the VAT account specified in the settings (Settings – General – VAT tab).
VAT calculation
VAT calculation is done in the Events – Open view, using the VAT button.
After pressing the button, a selection window will open where you can choose the desired settings for the calculation.
Date/ Period - Either a date range or period must be provided for which the value-added tax calculation is desired. Only those periods that have taxable transactions for which value-added tax has not yet been calculated will appear in the period selection.
Printout button allows the VAT calculation to be printed on the screen for review. By clicking on the transaction type row, you can see which accounts' transactions contribute to the total.
By clicking on the account, you can drill down into the transactions of the selected account and value-added tax code.
Continue - After printing and checking the screen, you can carry out the actual VAT calculation by clicking the Continue button. The program will ask for the information needed to finalize the period tax declaration:
Save to Archive – option allows you to select which subcategory the attachment files created by VAT accounting will be saved to, or alternatively, you can create a new subcategory by entering the name of the new subcategory in the create new field. The main category is defined on the VAT tab of the general accounting settings.
Finalizing VAT – the actual VAT calculation is done using this option. Select the voucher type from the list for which the VAT entries are to be made. The voucher type is suggested from the settings (Settings – General – VAT tab). The program suggests the last day of the selected period as the voucher date. You can change the date if necessary. The description for the accounting entry suggests “Tax return for self-assessed taxes “period/year” ”.
Create Purchase Invoice –option the program generates a purchase invoice for payment in Purchase Invoices during VAT calculation.
Note! Before the creation of purchase invoices is possible, the Tax Administration must be established as a supplier in Purchase Invoices, after which the supplier ID is provided in the accounting general settings VAT tab.
In purchase invoices, the invoice date will be the date provided when finalizing the tax declaration, and the invoice number will be the VAT voucher type/voucher number. The supplier, bank account, and reference number will come from the general settings of accounting on the VAT tab.
The program generates a credit invoice for Purchase Invoices regarding the refundable tax.
Note! If the periodic tax calculation is canceled, the cancellation does not remove the purchase invoice from Purchase Invoices. If necessary, manually remove the purchase invoice from Purchase Invoices.
TYVI data is always generated automatically in connection with tax calculation.
Ok button will start the program's posting of value-added tax entries. Cancel button allows you to return to the previous view.
At the end of the period tax declaration, the program generates VAT events in the Events – Open view for the selected voucher type.
In value-added tax accounting, the program posts the VAT transaction to the sales or purchases VAT account defined behind the VAT code. Finally, the program clears the sales and purchases VAT accounts to the Tax Account bookkeeping account specified in the settings (General – VAT tab).
For events for which VAT accounting has been done, the program adds the tax declaration calculation information (e.g. 29).
Transactions for which value added tax calculation has been performed cannot be modified or deleted. If such a transaction is selected for editing in the Transactions view, the program will display the message "Error - Transaction cannot be modified (VATREPORTNRO)"
If there is a need to correct the transaction, the VAT calculation must first be reversed. Read more about reversing the VAT calculation here.
Sending the VAT report to the tax authority
Once the VAT return has been completed, you can send it directly to the tax authority from the VAT-reports view (Reports – Accounting – VAT Reports). Making the submission requires the use of the Accounting++ feature and the user must have main user rights for Accounting (company-specific or Own Office level).
Select the calculation to be sent by checking the box in front of the row and click the Send to Tax Authorities button. The program will ask for confirmation:
Confirm the submission by clicking Ok. If you want to cancel the submission, click Close.
NOTE! Calculations can only be sent one at a time!
VAT reports view has three columns related to the submission:
- Delivery status -column displays the status of the submission of the calculation. There are two statuses: Sent and Error.
- Sender-column shows which user ID was used to send the calculation.
- Delivery Date-column shows the submission date of the calculation to the tax authority.
After the submission, immediate feedback about the submission will be received from the tax authority's service:
- Sent. The notification has been successfully sent and received by the tax authority's service.
- Error. If there is an error in the data or transmission, an error message will appear below the send button:
If the shipment fails due to an error in the material, the reason will be communicated in the error message.
If you receive an error message like Error ...: Error sending the request to the tax administration. | null, check if there is a valid tax authority certificate (incomes register certificate) in the Menu. You can verify the valid certificates in the Certificate Service of the Income Register view in the Menu (Menu – Income Register – Certificate Service – Valid Certificates).
Other common mistakes include, for example.
- Business ID or personal identification number is missing or incorrect -> Check the business ID in the company's information, recreate the calculation, and send it to the tax authorities.
- The timestamp generated by the software is more than 31 days in the past or future -> Check the period of the calculation and correct the period information, recreate the calculation, and send it to the tax authorities.
Manual submission of VAT report to the tax authorities
If the Accounting feature Accounting++ has not been activated, the TYVI file must be sent to the tax authorities manually.
By clicking on the -icon, the material can be opened on the screen. The file can be saved in the Firefox browser by right-clicking the icon and selecting “Save Link As…” and then choosing an appropriate save folder. The saved file can be forwarded, for example, using the Ilmoitin.fi service.
Correction and resending of incorrect data
If you need to make changes to data that has already been sent to the tax authority, you can normally reverse the calculation in Accounting, make the necessary corrections to the data, recalculate, and send a new calculation to the tax authority. The new calculation for the same declared period automatically replaces the old calculation in the tax authority's systems.
Checking error messages retrospectively
The possible error message is visible in the VAT Reports view only as long as you are in the view and do not perform any other actions. If you switch views or reload the view for any reason, the error message will disappear.
If the submission of the notification fails and the reason for the error is indicated as missing business ID, check the business ID in the settings (Settings - General - Company Information). If necessary, correct or add the business ID and regenerate the VAT calculation before resubmission.
You can check the error message later through the Menu's Incomes Register view. Read more about the Incomes Register view here.
No VAT activity notification
According to the guidance from the Tax Administration, if a customer is registered in the Tax Administration's VAT register, they must submit a VAT declaration for each tax period. If there has been no taxable activity, this should be reported with the identifier
056=1 "No Activity".
No activity notification is made in the program as follows. A date range is provided instead of the period for which the notification is given (where there is no VAT-liable activity).
First, print the calculation on the screen using the Print button. All the data is zero in this case. If this is correct, check the box for No VAT activities during period. After this, proceed with the actual report by clicking the Continue button as usual.
The following information will be printed for the report (Reports – Accounting – VAT Reports) (056=1 "No activity").
Information about non-VAT liable activities will also be included in the emerging TYVI material.
Note! The No Activity notification also reserves one voucher number from the VAT voucher type. Each notification has a voucher type and a voucher number.
Marking the VAT report as sent
The VAT declaration can be marked as sent in the Reports - Accounting - VAT Declarations view. This is done by selecting the generated VAT declaration and clicking the Mark as sent button. This function is intended for situations where the VAT declaration has already been sent, for example, via Omavero, and it is desired to prevent resending in Heeros Accounting.