About VAT categories

A VAT category is a group of VAT rates that are levied for selling or purchasing particular goods or services in all locations of your suppliers and customers.
You create a VAT category and associate it with the appropriate goods and services, which are defined as stock and non-stock items in Visma.net ERP.
The VAT rates of a particular VAT category will be used for calculating VAT amounts in the documents in which the corresponding stock or non-stock items are specified.

However, not all VAT rates included in the VAT category specified for an item will be applied to a particular invoice that includes the item.
The VAT rates that are not levied in the VAT zone of the supplier or customer specified in the document will be excluded.
Thus, only the VAT rates included both in the VAT category of the stock or non-stock item and in the VAT zone of the supplier or customer will be used for VAT amount calculation.

For example: Consider a company that sells books in Oregon and Delaware; the company defines a Books VAT category that includes the sales VAT rates of both states.

In reality, a customer from Delaware pays only the Delaware VAT and a customer from Oregon pays only the Oregon VAT, because the customers are located in different VAT zones, each with a specific set of VAT rates.
To apply VAT rates appropriately, for each sale transaction, the system applies only VAT rates in both the VAT zone and VAT category lists.
The Delaware VAT zone, then, includes the VAT that applies to book sales in this state, and the Oregon VAT zone includes the state-specific VAT applicable to books.

You can create as many VAT categories as you need.

You can create a VAT category that includes the VAT rates that should be excluded from the VAT zone, so that the products or services of this category are the subject to all VAT rates of the VAT zone except the VAT rates included in this VAT category.

To do this, select the Exclude listed taxes check box in the VAT categories (TX205500) window.

Parent topic:Manage VAT zones and categories

Related concepts
Manage VAT zones and categories

Related tasks
Create a VAT category