About VAT calculation

The system calculates taxes based on the following details specified in the document:

• The supplier or customer
• The item ID
• The quantity of stock items
• The unit cost of each stock item

The system calculates the VAT and taxable amounts by using the settings of each VAT that corresponds to both the VAT category of the specified item ID and the VAT zone of the selected supplier or customer. The system calculates the VAT and taxable amounts for each line of the document or for the total document amount, depending on the settings of the applied VAT (for details, see: About VAT settings).

The VAT amount is entered in the corresponding field of the invoice: VAT taxable total, VAT exempt total, or VAT total, depending on the VAT applied to the document.

After you have released the document, the system creates the corresponding general ledger batch and records these amounts to the appropriate general ledger accounts.

For details, see: Manage taxes - overview.

Visma.net ERP gives you the ability to create VAT reports. If your company plans to create VAT reports by using Visma.net ERP, you should configure a VAT report for each tax collection agency to which the taxes have to be reported. For details, see: Configure VAT reports - overview.

When you have configured a VAT report and set up all required relations (see: Set up VAT calculation), you can prepare the VAT report by clicking one button. You should set up the reporting periods and some report properties individually for each tax agency account. (In Visma.net ERP, a tax agency is defined as a supplier.) All the required VAT and taxable amounts will be collected in the VAT report as each taxable document is released in the system.

While preparing a VAT report, you can view all documents that were used for composing the VAT report—that is, the documents, such as invoices whose VAT-related amounts were collected in the VAT report.

You can view any required VAT-related information for a selected period or the date by using the following reports:

• VAT summary (TX62100S)
• VAT details (TX62051S)
• VAT details by general ledger account by date (TX622500)
• VAT summary by general ledger account by period (TX622000)
• VAT details by general ledger account by period (TX621500)