About tax agency account setup

You can configure a tax agency account in Visma Net to cover either of the following purposes:

  • You want to set up tax reporting for the tax agency.
    For such an agency, you configure an appropriate tax report and set up automatic accumulation of tax amounts in the tax report.
  • You want to pay taxes directly to the tax agency.
    (For certain taxes, such as the customs duties on imported goods, instead of filing tax reports, you must pay the taxes directly to the tax agency.)
    In this case, you need to create the tax invoices by using the VAT invoices and adjustments (TX303000) window, and then pay the invoiceable amounts to the supplier (tax agency).

The following sections of this topic describe how you establish the general settings for a tax agency and how you set up a tax agency for each of the cases described above.

In Visma Net, you define a tax agency as a supplier (because you make payments to it) by using the Suppliers (AP303000) window.
In this window, you specify the supplier as a tax agency by selecting the Supplier is tax agency check box, which causes the Tax agency settings tab to appear in the window.
On this tab, you should specify the specific settings for the tax agency.

To ease data entry when a new tax agency is created, you can create a supplier class that is designed for tax agency accounts.
When you create a new tax agency, you select this class, and the system fills in the settings you have established for it, such as the country, the terms of payment, and the General ledger accounts.
You can overwrite the default values for a particular tax agency, if needed.

For each tax agency to which you will report taxes, you specify the following tax report-related parameters on the Tax agency settings tab of the Suppliers (AP303000) window:

You can specify the reporting period (Semi-monthly, Monthly, Once in two months, Quarterly, Semi-annually, Yearly, or By financial period).
You can change the period type after all the year's reporting periods are closed.

You can specify the following General ledger accounts, which will be used for keeping all tax-related payments:

  • Tax payable account:
    This account accumulates the tax amounts that should be paid to a tax agency.
    (For example: Tax amounts resulting from sales that are subject to sales tax.)
  • Tax claimable account:
    This account accumulates the tax amounts that should be claimed from a tax agency.
    (For example: Tax amounts resulting from purchases that are subject to VAT.)
  • Tax expense account:
    This account accumulates the tax-related expenses.
    (For example: Tax amounts resulting from purchases that are subject to use tax.)

You can specify the date when the tax year should start for the selected tax agency.
If the tax year is already configured for the tax agency, you can change the start date of the next tax year, so that the current tax year will be shorten.
To change the start date, you should select the required date from the list.
Thus, your current tax year will end one day before the specified date.
For example: Suppose that the tax year currently configured in your system ends on 31.12.2020 and that you specify the start date of the next tax year as 1.8.2020.
After you save this change, your current tax year will end on 31.7.2020, and will consist of seven periods.

You can specify the maximum number (0 through 9) of decimal places in the values (tax amounts and taxable amounts) gathered in the VAT report lines.
You can instead use the decimal precision of the reporting currency by selecting the Use currency precision check box (which makes the Tax report precision field unavailable).

You can specify the rounding rule for adjusting the values gathered in the tax report, so they will be rounded to the number of decimal places according to the defined precision.
To do this, select one of the following options: Mathematical, Ceiling, or Floor.

After you have specified and saved the settings on the Tax agency settings tab of the Suppliers (AP303000) window, you configure the VAT reporting functionality for the tax agency by completing the following tasks:

  1. In the Reporting settings (TX205100) window, configure a VAT report for a particular tax agency.
  2. In the VAT (TX205000) window, create all taxes applied by this tax agency with their effective rates and effective dates (if you haven't already created these taxes).
    For each of these taxes, select the tax agency account in the Tax agency ID field (on the Tax settings tab).
  3. Set up the tax calculation.
    For details, see: Set up VAT calculation.

Thus, the tax report configured for a specific tax agency will accumulate only the taxes defined for that tax agency.

For each tax agency for which you will pay the taxes directly, you need to configure this functionality by completing the following tasks:

  1. In the Payment terms (CS206500) window, create the payment terms for the tax agency (if these terms have not already been created), and specify them for the tax agency on the General settings tab of the Suppliers (AP303000) window.
  2. In the VAT (TX205000) window, create required taxes and select the Enter from VAT invoice check box for each tax.
  3. Set up the tax calculation.
    For details, see:About prerequisites and preparation.

To pay the tax to the tax agency, you need to create a VAT invoice by using the VAT invoices and adjustments (TX303000) window, and pay it.