This guide explains the handling of marginal tax in Netvisor, including examples. 

Marginal taxation procedure refers to the special taxation procedure for used goods purchased tax-free, as well as art, collectibles, and antiques. Applying marginal taxation is always optional. Alternatively, the normal value-added taxation procedure can be used.

To eliminate the hidden tax included in the price of used goods and art, collectibles, or antiques in value-added taxation, marginal taxation can be applied in certain resale situations, which removes the hidden tax. The reseller then pays tax on the profit margin, which is the difference between the selling price and the purchase price of the goods.

The sales profit margin can be calculated either item-by-item or using a simplified procedure. These methods can also be used simultaneously. The purchase price is considered the price paid to the seller of the goods, while the selling price is the price charged to the buyer, including all price additions.

The following instructions are intended for situations where the company's bookkeeping is handled manually in Netvisor without ledgers.

Examples of handling marginal tax in Netvisor:

NOTE! It is always the user's responsibility to check the current instructions provided by the Tax Administration and follow them when making entries. The guide does not take into account the section on the correction of sales and purchases in KILA's statement (1400/1996). This must be calculated manually, as it is not a software-dependent matter.

MARGINAL TAXATION, RECORDING SALES (Simplified procedure VAT 79 §)

Example:

 

The tax base is the profit margin, which is 1,860 €.

The tax payable is 24%, i.e., 1,860 € / 124 * 24 = 360 €.

The tax is reported in section 301 of the periodic tax return. Tax on domestic sales by tax rates 24%.

The share of tax-free sales is 4,200 € - 1,860 € = 2,340 €.

Recording sales in Netvisor:

You can record the sales by selecting Bookkeeping > Vouchers > Add voucher.

  • First, record the share of taxable sales, i.e., the profit margin.
  • Select the VAT id and VAT %. Use the control data KOMY and 24%, in which case value-added tax is recorded in section 301 of the periodic tax return. Tax on domestic sales by tax rates 24%.

  • Then record the share of tax-free sales, i.e., the difference between the selling price of used goods and the profit margin.
  • Do not select a VAT id or VAT % for this row.

Now the sales entries have been made.

  • The voucher now separates the total amount of the selling price of used goods.
  • Provide a Debit posting for the voucher.

 HANDLING NEGATIVE PROFIT MARGIN

The profit margin is negative when the purchase prices for the tax period are greater than the selling prices.

  • Add the negative profit margin to the marginally taxed purchases of the next tax period.
  • At the end of the fiscal year, you can transfer the negative profit margin to the next fiscal year.
  • Do not handle the negative profit margin in any other way. For example, do not record the tax calculated from it as a reduction in the tax payable on the sale of new goods or as an addition to the deductible tax.
  • If the profit margin for the tax period is negative, no tax is payable at all.
  • Do not report anything in the periodic tax return regarding taxes payable on sales for this part.

February:

  • Since the profit margin for the month is negative, no tax is payable at all.
  • The February periodic tax return does not report any tax payable on sales for this part.

Recording sales in Netvisor:

You can record the February sales by selecting Bookkeeping > Vouchers > Add voucher.

  • Record the sales without vat handling.
  • Take vat handling into account in the entries of the following month.
  • If necessary, modify the ML vouchers formed from sales invoicing into entries.

  • Now the sales entries have been made.
  • The voucher now separates the total amount of the selling price of used goods.
  • Provide a Debit posting for the voucher.

 March:

  • In March, pay and report tax on the combined profit margin of February and March, i.e., 2,360 € - 810 € = 1,550 €.
  • The tax base is the profit margin, which is 1,550 €.
  • The tax payable is 24%, i.e., 1,550 € / 124 * 24 = 300 €.
  • Report the tax in section 301 of the periodic tax return. Tax on domestic sales by tax rates 24%.
  • The share of tax-free sales for March is 3,850 € - 1,550 € = 2,300 €.

Recording sales in Netvisor:

You can record the March sales by selecting Bookkeeping > Vouchers > Add voucher.

  • First, record the share of taxable sales, i.e., the profit margin.
  • Select the VAT id and VAT %. Use the control data KOMY and 24%, in which case value-added tax is recorded in section 301 of the periodic tax return. Tax on domestic sales by tax rates 24%.

  • Then record the share of tax-free sales, i.e., the difference between the selling price of used goods and the profit margin.
  • Do not select a VAT id or VAT % for this row.

  • Now the sales entries have been made.
  • The voucher now separates the total amount of the selling price of used goods.
  • Provide a Debit posting for the voucher.

Frequently asked questions

Question: What does the marginal taxation procedure mean and when can it be used?

Answer: The marginal taxation procedure is a special taxation procedure for used goods purchased tax-free, as well as art, collectibles, and antiques, where tax is paid on the profit margin. You can apply it in certain resale situations to remove hidden tax, and its use is always optional.

Question: How do I calculate the profit margin that forms the tax base in marginal taxation?

Answer: Calculate the profit margin as the difference between the selling price and the purchase price of the goods. You can calculate the profit margin item-by-item or using a simplified procedure, and you can also use the methods simultaneously.

Question: How do I record marginally taxed sales in Netvisor in manual bookkeeping?

Answer: First record the share of taxable sales, i.e., the profit margin, with a VAT id and VAT % (KOMY and 24%), so that the tax is recorded in section 301 of the periodic tax return. Then record the share of tax-free sales without a VAT id and VAT %, and provide a Debit posting for the voucher.

Question: What should I do if the profit margin is negative for the tax period?

Answer: Add the negative profit margin to the marginally taxed purchases of the next tax period and, if necessary, to the next fiscal year. Do not record the tax calculated from it as a reduction or addition, and do not report it in the periodic tax return under taxes payable on sales, because no tax is payable.

Question: How do the example situations for February and March affect tax reporting?

Answer: In February, due to the negative profit margin, you neither pay nor report tax. In March, you pay and report tax on the combined profit margin of February and March in section 301 of the periodic tax return, and you record the sales in Netvisor according to the profit margin and the share of tax-free sales.

Keywords

marginal taxation, marginal tax, profit margin, used goods, works of art, collectibles, antiques, Netvisor, manual bookkeeping, periodic tax return, VAT 79 §, KOMY, negative profit margin, tax-free sales, taxable sales

This article has been translated using an AI-based translation tool. The contents or wording of these instructions may differ from those in other instructions or in the software.


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