Self-Initiated Taxes

This guide covers self-initiated taxes in Netvisor. You can find the self-initiated taxes view by navigating to Financial management > Company obligations > Self-initiated taxes

CONTENT

• Self-initiated taxes view
• No declarations
• New periodic tax return
• Mark period as complete
• Quarterly and annual declaration

Self-initiated taxes view

In this section, you can review the entries made to the tax account each month throughout the year, create periodic tax returns, and review already created periodic tax returns. Before making the VAT declaration, the VAT for the respective month must be calculated if there have been VAT transactions during that month.

To make the year visible in the view, there must be a fiscal year established for that year and at least one VAT calculation created.

The amount shows how much the VAT calculation has recorded as a balance for that month on the tax account. By clicking the amount link, you can also access the account balance report for that month.

The title of the month link indicates the status of the VAT period declaration. By clicking the month link, you can create a new periodic tax return or a corrective periodic tax return if the VAT calculation has been modified and a corrective declaration needs to be sent. Additionally, in the same view, you can add lower limit reliefs and make account transfers for possible tax payments.

Other events show if there have been entries made to the tax account outside of the VAT calculation or employer contributions. The link shows events that are not linked to the account statement or are not automatic tax account payments. It is advisable to use the accounting account balance report for monitoring the tax account. Please note that manually entered amounts may cause the sum of the later created tax account transfer not to match the correct payable amount, in which case the transfer amount should be carefully checked and manually adjusted if necessary.

No declarations

If there is nothing to declare for the respective month, click "No declarations" and send a so-called empty declaration to the tax authority. Netvisor will give a notification: Are you sure you want to create a tax declaration and declare that there is no VAT activity for the period?

This creates an empty declaration, but fields 054/055 and 056/057 will indicate that there was no VAT activity for the respective month. 

New periodic tax return

Creating a new periodic tax return is done by clicking the month's name. The link opens a new window that looks like the one below. 

A new periodic tax return is created by pressing the "Create declaration" button. Before that, any possible lower limit reliefs must be added. Read our  announcement about the removal of the lower limit relief on 1.1.2025. The "Cash basis VAT" option will be removed as Netvisor does not support cash basis VAT reporting. Please report any cash basis directly to Omavero. The tax period must be marked as open for the "Create declaration" button to be visible. The created VAT declaration will appear under the Created declarations section, showing when the declaration was created and its status. The created declaration is then sent to the tax authority from the self-initiated taxes sending view. Creating the declaration itself does not send anything to the tax authority. Detailed instructions on sending the declaration can be found here: Sending the periodic tax return.

 "Transfer to payment view" button creates an account transfer if needed. Select the desired bank account for the transfer and modify the transfer date if desired. Always check the amount that goes to the transfer to ensure it is correct! If the amount is not correct, correct it directly by replacing the existing amount. The amount may differ if manual entries have been made to the tax account. If you receive refunds from the tax authority, no transfer is made. 

The tax account transfer is then ready with the given information in the purchase section's Transfers view, waiting for payment, from where it must be sent for payment. If there is no tax payable, no transfer is made, but the VAT declaration must still be sent to the tax authority. The VAT declaration is sent from the self-initiated taxes sending view. Instructions can be found here.

Mark period as complete

Finally, the period can be marked as complete using the "Mark period as complete" link in the upper right corner. Marking the period as complete helps track the status on the tax account view's homepage, where you can see directly whether the month is open or complete. If there is no tax payable, or the tax has been paid through other means than Netvisor, marking the period as complete removes the notice "Tax declaration (VAT) unpaid" from the homepage obligations widget. 

Quarterly and annual declaration

If the company is a quarterly or annual declarant, the VAT tax period must be defined in the accounting settings under Accounting and obligations settings. Quarterly and annual declarants must calculate VAT every month, but the declaration creation is enabled according to the tax period. For example, for an annual declarant, the declaration creation is activated after the last calculated VAT month.

FAQ

Why does the homepage widget alert unpaid VAT, even though the VAT is on refund for the respective month?

If own events have been recorded for the respective month, these own events may cause the VAT on refund for that month to be "payable," even though there is actually no payable VAT. In this case, the transfer creation suggests payable tax, even though the month is actually on refund. The widget may alert about the payment, and this can be corrected by marking the respective period as complete in the self-initiated taxes view. When the period is marked as complete, the transfer creation button disappears.

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