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 accounting 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 basis for the tax 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:
First, record the share of taxable sales, i.e., the profit margin.
Select the VAT code and VAT %. With the control data KOMY and 24% value-added tax, it 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 code or VAT % for this line.
Now the sales entries have been made.
The voucher now separates the total amount of the selling price of used goods. Provide a Debit entry 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. A negative profit margin can be added to the marginally taxed purchases of the next tax period. At the end of the fiscal year, the negative profit margin can be transferred to the next fiscal year. A negative profit margin must not be handled in any other way, i.e., the tax calculated from it must not be recorded 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, and nothing is reported in the periodic tax return regarding taxes payable on sales.
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:
In Netvisor, sales are recorded without VAT handling. VAT handling is considered in the entries of the following month. If necessary, ML vouchers formed from sales invoicing should be modified in the 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 entry for the voucher.
March:
In March, tax is paid and reported on the combined profit margin of February and March, i.e., 2,360€-810€=1,550€.
The basis for the tax is the profit margin, which is 1,550 €.
The tax payable is 24%, i.e., 1,550 € / 124 * 24 = 300 €
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 for March is 3,850€ -1,550€ = 2,300€.
Recording sales in Netvisor:
First, record the share of taxable sales, i.e., the profit margin.
Select the VAT code and VAT %. With the control data KOMY and 24% value-added tax, it 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 code or VAT % for this line.
Now the sales entries have been made.
The voucher now separates the total amount of the selling price of used goods. Provide a Debit entry for the voucher.
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