Manage taxes
/visma-net-erp/help/vat/manage-taxes
section
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# Manage taxes
About VAT settings
/visma-net-erp/help/vat/manage-taxes/about-vat-settings
page
When you create a VAT rate in the system, you have to specify the settings that the system uses to calculate the VAT amount and the taxable amount (that is, the tax base) in the documents.
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# About VAT settings
When you create a VAT rate in the system, you have to specify the settings that the system uses to calculate the VAT amount and the taxable amount (that is, the tax base) in the documents.
When you create a VAT rate in the system, you have to specify the settings that the system uses
to calculate the VAT amount and the taxable amount (that is, the tax base) in the documents.
You configure a VAT by using the [VAT (TX205000)](/visma-net-erp/help/vat/vat-windows/vat-tx205000/) window.
Depending on the type of the VAT, you can specify different settings.
Most of these
settings and their use are described in detail below.
## Defining the method of calculating the VAT amount
Different taxes may require different methods of calculation.
You can select the
appropriate option in the **Calculate on** field in the [VAT (TX205000)](/visma-net-erp/help/vat/vat-windows/vat-tx205000/) window.
The following options are available:
Extract from item amount
: The VAT is already included in the item price. The system extracts the VAT amount from the item amount according to the VAT rate that you specify.
Item amount
: The VAT amount is calculated on a per-item basis; that is, the VAT is applied to each line in the document.
Document amount
: The VAT amount is calculated on a per-document basis. That is, the document total amount is used for VAT calculation.
Item + VAT amount
: The VAT amount is calculated by using as the tax base the sum of the item amounts and the VAT amount.
Document + VAT amount
: The VAT amount is calculated by using as the tax base the sum of the document amount and the VAT amount.
Consider an example in which the different VAT calculation methods are used.
Imagine that
the document contains 100 items, each priced at €10, and the VAT rate is 8.25%:
+ With the per-document method, the tax base (total amount of the document) would be 100 items x €.10= €.1000. Then the VAT amount would be €1000 x.0825 = €82.5.
+ With the per-item method, the VAT amount per item would be €10 x.0825 = €0.825, which rounds to €0.83. Then the total VAT amount would be €0.83 x 100 items = €83.
As you can see, using different methods of VAT calculation for the same documents may
cause discrepancies in the document totals due to rounding.
Thus, you need to choose the
calculation method that best suits your needs.
## Defining how cash discounts are applied
In the **Cash discount** field in the [VAT (TX205000)](/visma-net-erp/help/vat/vat-windows/vat-tx205000/) window, you can specify the method of calculating the taxable amount if a cash discount is
applied to the document.
You can select one of the following options:
> [!NOTE]
> A cash discount can be applied to a document only within the cash discount period. The end date of the cash discount period is specified in the **Cash discount date** field in the invoice (or the similar document). This date is defined by the system according to the specified payment terms.
Reduces taxable amount
: The system deducts the discount amount from the document amount before VAT calculation. Thus, the VAT amount is calculated based on the discounted taxable amount. For example: Assume that the price of the one purchased item is 100€, the VAT rate is 10%, and the cash discount is 20%. In this case, the taxable amount is decreased by the discount amount and is equal to €100 (price) - €20 (discount) = €80. Thus, the VAT amount is €8. The document amount is equal to the product price plus the discounted VAT amount: €100 (price) + 8€ (VAT amount) = €108.
Does not affect taxable amount
: (selected by default): The discount amount doesn’t affect the taxable amount. That is, the base for VAT calculation is the same as the base for discount calculation. As in the previous example, consider a price of €100, a discount of 20%, and a VAT of 10%. Because the taxable amount is not affected by the discount, it is €100. The VAT amount is €10. Thus, the document amount is €110.
Reduces taxable amount on early payment
: . The system recalculates the taxable amount in the document if the full payment has been received within the cash discount period. The documents that have been fully paid within the cash discount period are listed in the [Generate VAT on cash discount (AR504500)](/visma-net-erp/help/customer-ledger/customer-ledger-windows/generate-vat-on-cash-discount-ar504500/) window. In this window, you can generate credit notes that will be automatically applied to the corresponding documents upon release.
## Updating the VAT rate
If the rate of a particular VAT is going to be changed in the future, you can specify in the [VAT (TX205000)](/visma-net-erp/help/vat/vat-windows/vat-tx205000/) window the new VAT rate and the date from which it will be
effective.
To do that, you should add a new row to the table on the **VAT schedule** tab and specify its settings.
## Defining the minimum and maximum taxable amounts
For each row of the table on the **VAT schedule** tab of the [VAT (TX205000)](/visma-net-erp/help/vat/vat-windows/vat-tx205000/) window, you can define the minimum and maximum taxable amount for each VAT in the corresponding columns.
+ If a minimum amount is specified in the **Min. taxable amount** column, the VAT rate of 0 will be applied to amounts less than the specified minimum.
+ If a maximum amount is specified in the **Max. taxable amount** column, the VAT rate of 0 will be applied to amounts greater than the specified maximum.
In all other cases, VAT is calculated by using the specified rate.
## Defining the reporting group
If you plan to use the built-in VAT reporting functionality in Visma Net, you should select the reporting group that you have created for the tax agency specified in the **Tax agency ID** field in the [VAT (TX205000)](/visma-net-erp/help/vat/vat-windows/vat-tx205000/) window
If you do not plan to use the built-in VAT reporting functionality, specify one of the predefined reporting groups ( **input** or **output** ) in the **Reporting group** column on the **VAT schedule** tab of this window.
Create a VAT
/visma-net-erp/help/vat/manage-taxes/create-a-vat
section
Make sure that the VAT reporting functionality is enabled in the Enable/disable functionalities (CS100000) window.
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# Create a VAT
Make sure that the VAT reporting functionality is enabled in the Enable/disable functionalities (CS100000) window.
For more information: [Enable/disable functionalities (CS100000)](/visma-net-erp/help/common-settings/enable-or-disable-functionalites/enable-disable-functionalities-cs100000/).
## Before you proceed
## Create a VAT
1. Go to the [VAT (TX205000)](/visma-net-erp/help/vat/vat-windows/vat-tx205000/) window.
1. Click .
1. On the **VAT settings** tab of the top part, proceed as follows:
1. In the **VAT ID** field, type the unique identifier for the tax.
1. Optional: In the **Description** field, type a description of the VAT, so you can easily identify it in the list.
1. In the **VAT type** field, select **VAT**.
1. In the **Calculate on** field, select one of the following calculation methods for the VAT, described fully in [Set up VAT calculation:](/visma-net-erp/help/vat/set-up-calculation/set-up-vat-calculation/)
+ **Extract from item amount**
+ **Item amount**
+ **Item + VAT amount**
+ **Document amount**
+ **Document + VAT amount**
1. In the **Cash discount** field, select one of the following methods of calculating the VAT amount if a cash discount is applied to the document:
+ **Reduces taxable amount**
+ **Reduces taxable amount on early payment**
+ **Does not affect taxable amount**
1. Optional: In the **Tax agency ID** field, select the tax agency to which you will report the VAT. Leave the field blank if you have not configured a tax agency account yet, or do not plan to prepare a VAT report in Visma Net.
1. Optional: In the **Not valid after** field, specify the last date the VAT is effective.
1. On the **General ledger accounts** tab of the top part, do as follows:
1. In the **VAT payable account** field, select the general ledger account to accumulate VAT amounts to be paid to the applicable tax agency.
> [!NOTE]
> By default, the liability account associated with the specified tax agency is inserted, but it can be overwritten.
1. In the **VAT payable subaccount** field, enter the number of the corresponding subaccount.
1. In the **VAT claimable account** field, select a general ledger account to accumulate the VAT amounts to be claimed from the applicable tax agency.
1. In the **VAT claimable subaccount** field, enter the number of the corresponding subaccount.
1. On the **VAT schedule** tab of the details area, do as follows:
1. Click .
1. In the **Start date** field, specify the date when the VAT becomes effective.
1. In the **VAT rate** field, specify the rate of the output tax.
1. Optional: In the **Min. taxable amount** field, specify the minimum taxable amount for which this VAT rate is applicable. If a minimum amount is specified, the VAT rate is 0 on amounts less than the specified minimum.
1. Optional: In the **Max. taxable amount** field, specify the maximum taxable amount for which this VAT rate is applicable. If a maximum amount is specified, the VAT rate is 0 on amounts greater than the specified maximum.
> [!NOTE]
> The **Min. taxable amount** and **Max. taxable amount** fields are unavailable if the **Extract from item amount** option is selected in the **Calculate on** field.
1. In the **Reporting group** field, specify the **Output** reporting group for the output tax. The specific reporting group is available only if the tax agency is selected in the top part. If the tax agency is not selected or you have not configured reporting groups for the tax agency, select the **Default output group**.
1. Click .
1. In the **Start date** field, specify the date when the VAT becomes effective.
1. In the **VAT rate** field, specify the rate of the input tax.
1. Optional: In the **Min. taxable amount** and **Max. taxable amount** fields, specify the corresponding amounts, if needed.
1. In the **Reporting group** field, specify the **Input** reporting group for the input tax. If the tax agency is not specified, select the **Default input group**.
1. Click .
The general VAT is created in the system. Now, set up VAT calculation across the system.
## Create a deductible VAT
1. Repeat steps 1-4 of the procedure in the previous section.
1. On the **VAT settings** tab, select the **Deductible VAT** check box.
1. On the **VAT schedule** tab, click .
1. In the **Start date** field, specify the date when the VAT becomes effective.
1. In the **VAT rate** field, specify the rate of the VAT that generally applies to specific purchases.
1. In the **Deductible VAT rate** field, specify the percentage of deduction that applies to the VAT amounts paid to the supplier on the specific purchases.
1. Optional: In the **Min. taxable amount** and **Max. taxable amount** fields, specify the corresponding amounts, if needed.
1. In the **Reporting group** field, select the **input** reporting group that was defined for the tax agency and was intended for this VAT.
1. Click .
The deductible VAT is created in the system. Now, set up VAT calculation across the system.
## Create a reverse-charge VAT
> [!NOTE]
> To configure automatic calculation of the **Reverse-charge VAT**, you need to create two VAT types by using the [VAT (TX205000)](/visma-net-erp/help/vat/vat-windows/vat-tx205000/) window: a general-type VAT and a tax of the Reverse VAT type.
1. Repeat steps 1-4 of the procedure in the first section of this topic.
1. On the **VAT settings** tab, select the **Reverse VAT** check box.
1. On the **VAT schedule** tab, click **Add row** on the table toolbar.
1. In the **Start date** field, specify the date when the tax becomes effective.
1. In the **VAT rate** field, specify the same rate as for the direct VAT.
1. Optional: In the **Min. taxable amount** and **Max. taxable amount** fields, specify the corresponding amounts, if needed.
1. In the **Reporting group** field, select the **output** reporting group that was defined for the tax agency and was intended for this VAT.
1. Click .
The reverse-charge VAT is created in the system.
For a correct calculation of the
reverse VAT, create a general VAT with the same VAT rate.
## Create an exempt VAT
1. Repeat steps 1-4 of the procedure **Create a general value-added tax**.
1. On the **VAT settings** tab, select the **Include in VAT exempt total** check box, so the taxable amount that is exempt from paying the VAT will be displayed in the **VAT exempt total** field in the documents, such as invoices.
1. On the **VAT schedule** tab, click **Add row** in the table toolbar.
1. In the **Start date** field, specify the date when the VAT becomes effective.
1. In the **VAT rate** field, specify a rate of zero for the output tax.
1. In the **Reporting group** field, select the **output** reporting group that was defined for the tax agency and was intended for this VAT.
1. Click .
1. In the **VAT rate** field, specify a rate of zero for the input tax.
1. In the **Reporting group** field, select the **input** reporting group that was defined for the tax agency and was intended for this VAT.
1. Optional: In the **Min. taxable amount** and **Max. taxable amount** fields, specify the corresponding amounts, if needed.
1. Click .
The exempt modification of VAT tax is created in the system. Now you need to set up VAT calculation across the system.
## Create a statistical VAT
1. Repeat the steps 1-4 of the procedure in the first section of this topic, **Create a general value-added tax**.
1. On the **VAT settings** tab, select the **Statistical VAT** check box.
1. On the **VAT schedule** tab, click .
1. In the **Start date** field, specify the date when the VAT becomes effective.
1. In the **VAT rate** field, specify a rate of 0 for the output VAT.
1. In the **Reporting group** field, select the **output** reporting group that was defined for the tax agency and was intended for this VAT.
1. Click .
1. In the **VAT rate** field, specify a rate of zero for the input VAT.
1. In the **Reporting group** field, select the **input** reporting group that was defined for the tax agency and was intended for this VAT.
1. Optional: In the **Min. taxable amount** and **Max. taxable amount** fields, specify the corresponding amounts, if needed.
1. Click .
The statistical VAT tax is created in the system. Now you need to set up VAT calculation across the system.
## Create a pending VAT
1. Repeat steps 1-3 of the procedure in the first section of this topic, **Create a general value-added tax**.
1. On the **VAT settings** tab, select the **Deductible VAT** check box.
1. On the **General ledger accounts** tab, perform the following instructions:
1. In the **VAT payable account** field, select the general ledger account to accumulate VAT amounts to be paid to the applicable tax agency.
> [!NOTE]
> By default, the liability account associated with the specified tax agency is inserted, but it can be overwritten.
1. In the **Tax claimable account** field, select the general ledger account to accumulate VAT amounts to be claimed from the applicable tax agency.
1. In the **Pending VAT payable account** field, specify the general ledger account to accumulate pending VAT amounts to be paid to the applicable tax agency.
1. In the **Pending VAT claimable account** field, specify the general ledger account to accumulate pending VAT amounts to be claimed from the applicable tax agency.
1. On the **VAT schedule** tab, click .
1. In the **Start date** field, specify the date when the VAT becomes effective.
1. In the **VAT rate** field, specify the rate of the VAT that generally applies to specific purchases.
1. In the **Deductible VAT rate** field, specify the percentage of deduction that applies to the VAT amounts paid to the supplier on these specific purchases.
1. Optional: In the **Min. taxable amount** and **Max. taxable amount** fields, specify the corresponding amounts, if needed.
1. In the **Reporting group** field, select the **input** reporting group that was defined for the tax agency and was intended for this VAT.
1. Click .
The pending modification of VAT tax is created in the system. Now you need to set up VAT calculation across the system.
Create a new VAT rate
/visma-net-erp/help/vat/manage-taxes/create-a-new-vat-rate
section
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# Create a new VAT rate
1. Go to the [Process VAT report (TX502000)](/visma-net-erp/help/vat/vat-windows/process-vat-report-tx502000/) window.
1. In the **VAT ID** field, select the VAT rate that you want to change. Depending on which VAT you select, one entry per reporting group is displayed on the **VAT schedule** tab.
1. On the **VAT schedule** tab, click  to add a new line.
1. In the **Start date** column, enter the date from which you want the new rate to be effective.
1. In the **VAT rate** column, enter the new rate.
1. In the **Reporting group** column, select the same reporting group as the old VAT.
1. If the selected VAT had several lines in the table, repeat steps 2 through 5.
1. Click .
## What is next?
You now have to decide how you want to report the VAT and set the preferences for that: [Set the financial period end date for the VAT period](/visma-net-erp/help/supplier-ledger/suppliers/set-the-financial-period-end-date-for-the-vat-period/).
Related pages
Tasks
Windows
Post non-deductible VAT to the same expense account as the purchase invoice amount
/visma-net-erp/help/vat/manage-taxes/post-non-deductible-vat-to-the-same-expense-account-as-the-purchase-invoice-amount
section
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# Post non-deductible VAT to the same expense account as the purchase invoice amount
## Before you start
[Create a new VAT rate](/visma-net-erp/help/vat/manage-taxes/create-a-new-vat-rate/)
To post VAT expenses to a VAT expense account, see [Post non-deductible VAT to a VAT expense account](/visma-net-erp/help/vat/manage-taxes/post-non-deductible-vat-to-a-vat-expense-account/).
1. Go to the [VAT (TX205000)](/visma-net-erp/help/vat/vat-windows/vat-tx205000/) window.
1. In the **VAT ID** field, select the VAT rate you want to use.
1. Select the **Partially deductible VAT** check box.
1. Click the **General ledger accounts** tab. By default, the **Use VAT expense account** check box is selected.
1. Deselect the **Use VAT expense account** check box. You see that the **VAT expense account** and the **VAT expense subaccount** fields become unavailable. Next time you create a purchase invoice, the non-deductible VAT you specify on the lines will be posted to the same expense account as the amount on the lines in the purchase document.
1. Click .
Related pages
Tasks
Windows
Post non-deductible VAT to a VAT expense account
/visma-net-erp/help/vat/manage-taxes/post-non-deductible-vat-to-a-vat-expense-account
section
2026-02-19T17:09:06+01:00
# Post non-deductible VAT to a VAT expense account
## Before you start
[Create a new VAT rate](/visma-net-erp/help/vat/manage-taxes/create-a-new-vat-rate/)
In Visma Net the default setting is that you post non-deductible VAT amounts to a VAT expense account.
To post VAT expenses to the same general ledger account as the amount of a specific purchase invoice, see [Post non-deductible VAT to the same expense account as the purchase invoice amount](/visma-net-erp/help/vat/manage-taxes/post-non-deductible-vat-to-the-same-expense-account-as-the-purchase-invoice-amount/).
1. Go to the [VAT (TX205000)](/visma-net-erp/help/vat/vat-windows/vat-tx205000/) window.
1. In the **VAT ID** field, select the VAT rate you want to use.
1. Select the **Partially deductible VAT** check box.
1. Click the **General ledger accounts** tab. The check box **Use VAT expense account** is selected by default.
1. In the **VAT expense account** field, select the expense account you want to use.
1. In the **VAT expense subaccount** field, press **F3** to select the subaccount associated with the account in step 5, or to select 0 (Default/None). Next time you create a purchase invoice, the non-deductible VAT you specify on the lines, will be posted to the given VAT expense account.
1. Click .
Related pages
Tasks
Windows