thumb_up
thumb_down
link
Copy link
Copied
insert_emoticon
lmatfy
Copied

Add VAT codes

You use VAT codes to calculate and enter VAT amounts in invoices and entries. You add a VAT code for every kind of VAT.

Use the VAT code to drive the journalisation of the VAT as well. The VAT code indicates the calculation method (add, extract, split, defer) for the VAT and the ledger account on which you want to enter the VAT amount. You also see the VAT code as a feature of financial entries to give you insight into VAT turnovers and allow you to derive them for the VAT and ICP declaration.

A VAT code must be recorded for each country and for each combination of VAT duty and VAT rate group.

Note: 

For transactions with international customers or suppliers, you cannot use the default VAT codes. This applies to intra-community provisions (imports from and exports to countries in the European Union), exports outside of the EU and Telesales. You must add separate VAT codes for these transactions.

A VAT code therefore has the following functions:

  • Profit uses the VAT code in an entry line to calculate the VAT amount.
  • Profit enters VAT amounts on the VAT accounts that have been linked to the VAT codes.
  • Profit puts the VAT amounts on the VAT declaration (via the link with VAT sections).

If you record an entry directly in a journal, you must select the VAT code, or typically it is already recorded as a preference for the ledger account. A number of checks have been defined in order to reduce the risk of errors. For example: the VAT duty of the VAT code must match the VAT duty of the debtor or creditor.

To add a VAT code:

  1. Go to: Financial / VAT/ICP / Configuration / VAT code.
  2. Click on: New.
  3. Enter a VAT code. Use a simple code for selection in the lines of the entry layouts.
  4. Select the Country to which you want to link the VAT code, such as the Netherlands (NL).
  5. Enter the description.
  6. Select Sales for Code Purchase/Sales if the VAT code is for sales entries, or select Purchase if the VAT code is for purchase entries.
  7. When entering invoices for debtors, you can only use VAT codes with Sales; and when entering invoices for creditors, only VAT codes with Purchase.
  8. Select the VAT duty.
  9. Select the VAT rate group.

    You can only select rate groups linked to the Country just selected. The VAT rate group is relevant if you use invoicing. Profit uses the percentage in the rate group to calculate the VAT amount for the line. You also see this percentage on the Rates tab.

  10. In Account, select the ledger account on which you want to enter the VAT amounts. You can only select VAT accounts.
  11. Select the calculation method that Profit should use.

    In normal circumstances you use the Normal calculation method.

  12. If applicable, enter the percentage you can reclaim from the Tax Authority in Reclaimable (%). Normally, you claim 100% back. If it is necessary to deviate from this, enter a lower percentage here.
  13. Select the Service calculation check box for a VAT code you use for IC levering diensten. Profit uses this to make a distinction between IC goods provision and IC services provision.  
  14. Select the VAT section to which you want to link the VAT code.

    VAT sections are the sections, as it were, from the declaration form. Declaration amounts are totalled up by section.

  15. Click on: Finish.

See also

Directly to

  1. Configure VAT/ICP
  2. VAT exemption
  3. Configure VAT and ICP declarations
  4. Add (or check) VAT accounts
  5. VAT rate groups and rates
  6. Add (or check) VAT codes
  7. Format (or check) VAT sections
  8. Set the VAT duty for a debtor/creditor
  9. VAT settings per item
  10. Configure VAT-transferred
  11. Configure automatic payment to the tax authority
  12. Configure a fiscal unit VAT declaration
  13. Configure the approval of the VAT declaration via OutSite
  14. Configure VAT declaration Luxembourg
  15. Configure turnover tax for the Netherlands Antilles
  16. Configure Aruba turnover tax (BBO and BAZV)
  17. Configure items for foreign VAT

Process

VAT/ICP declaration