Recognition of pending VAT - overview

For more information: VAT (TX205000).

In the VAT (TX205000) window of Visma Net, you can configure a value-added tax (VAT) of the Pending type to be applied to those documents whose VAT amounts should be recognised after the document has been released.

Once a document that is subject to a Pending VAT is released, the system records its VAT amount to an intermediate account (such as the Pending tax payable account or the Pending tax claimable account), where the VAT amount is kept until a user initiates the process of recognising the taxes.

When you run the recognition process, the system generates a general ledger transaction that moves the VAT amount from the intermediate (pending) account to the actual Tax payable or Tax claimable account.

The functionality related to value-added taxes is available only if the VAT reporting functionality is enabled in the Enable/disable functionalities (CS100000) window.

VAT recognition methods

In Visma Net, you can use either of the following methods of recognising the pending value-added taxes:

On documents

With this recognition method, the total VAT amount of a document can be recognised on any needed date. The system does not take into account payments in this case. You load the released documents with the pending VAT applied in the Recognise input VAT (TX503500) window or the Recognise output VAT (TX503000) window, and then initiate the recognition process.

On payments

With this recognition method, the VAT amount is recognised only when a payment is applied to a document. The VAT amount can be recognised fully or partially, depending on whether the applied payment fully or partially covers the document amount. The partial VAT amount to be recognised, if applicable, is calculated proportionally to the payment applied to a document. You load the released applications in the Recognise input VAT (TX503500) window or the Recognise output VAT (TX503000) window, and then initiate the recognition process for one application or multiple applications. Each VAT amount is recognised on the date when the payment has been applied to document.

Setup of recognition methods

To set up the recognition process, you specify the appropriate recognition method for each required tax agency on the Tax agency settings tab of the Suppliers (AP303000) window. In the VAT recognition method field, you select either On documents or On payments.

Before you initiate the VAT recognition processin the Recognise input VAT (TX503500) window or the Recognise output VAT (TX503000) window, you select a tax agency in the Tax agency field. The system inserts the recognition method of the selected tax agency in the VAT recognition method field. If needed, you can change the recognition method manually before you run the recognition process.

The next topics describe initiating of the VAT recognition process for both of these methods in detail.