And this is how it works...
Procedure when there is one balance tax rate
Basically, as a fiduciary, you can adjust the VAT settings of a new client when entering it, select the balance tax rate method as the reporting method and create a corresponding tax rate. The stored VAT codes are then automatically adjusted accordingly by the system.
Learn in this article how you can implement this.
Procedure for multiple balance tax rates
However, if several balance tax rates have to be taken into account at the same time, the procedure described above is not suitable, since only one balance tax rate can be determined. In the following, we will describe how this limitation can be circumvented.
Enter balance tax rates
First, enter the desired balance tax rates within the framework of a new VAT code group and its VAT codes. You will find general instructions on how to do this in this article. Make sure that the tax rate (1) corresponds to the tax rate affected by the balance tax rate, while the calculation rate (2) as well as the declaration rate (3) represent the rates specified by the tax administration. Select the sales tax account as the account (4).
Repeat this process for all the tax rates concerned.
If a balance tax rate has been successfully entered, the following example appears in the overview of all entered VAT codes.
Define accounts for different balance tax rates
Once the balance tax rates have been defined, the corresponding accounts must be defined for them in the income statement. To do this, you can follow these instructions, whereby you must select the balance tax rate defined in the previous step as the VAT code group (1).
Example of use
The stored balance tax rates are now also available as selectable options in the sales module when creating invoices, so that the correct interest rate can be calculated immediately in your internal accounting.
Learn more about the features of our sales module here.