Manage VAT zones and categories

In Visma Net, a VAT zone is a group of taxes levied on a particular geographical location for all goods and services that may be sold or purchased by your company.

You create VAT zones by using the VAT zones (TX206000) window for all locations of your customers and suppliers and add appropriate taxes to these VAT zones.

For VAT-exempt customers (for example, those with reseller permits), you can create the VAT zones with zero-rated taxes.

Thus, the VAT amount in the document will be calculated basing on the tax, which corresponds to the location of the customer or supplier as well as on the type of the services or goods mentioned in the document (for example, in the invoice), for which, in turn, you should also create and assign a VAT category.

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.
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.