This guide covers the handling of value-added tax (VAT) in Netvisor and the system's VAT identifiers. 

CONTENTS

Handling of value-added tax in Netvisor

The Netvisor accounting system is based on a net booking procedure, where the accounting transaction always results in a net entry and where VAT portions are recorded as separate transaction lines. This ensures that the income statement and balance sheet reporting of the accounting are always available without any adjustments occurring in connection with the processing of the VAT period.

In Netvisor, a VAT identifier and tax rate are used on transaction lines. These guide the calculation and reporting of value-added tax. Based on the VAT identifier, the transaction is placed in the correct group in the VAT calculation and control report. If you do not know where you want the transaction to appear in the VAT calculation and report, please verify it, for example, directly with the Tax Administration. The instructions below will help you choose the correct identifier in Netvisor based on this information.

In the chart of accounts, default VAT identifiers can be set for accounts, which are also used by the system's default posting functions. VAT-specific accounts are not needed in the chart of accounts.

VAT identifiers

Here you can get all VAT codes in PDF format: VAT codes 

Here are the VAT codes in Visma Netvisor in pdf: VAT codes

The available VAT identifiers are fixed and set by the system supplier. The following VAT identifiers are available:

No VAT handling (-)

  • The transaction does not appear in the VAT calculation or the periodic tax return. 
  • The system always records the VAT rate as 0%.

KOMY Domestic sales

  • The amount of tax is recorded in the VAT liability account and appears in the periodic tax return in section 301, 302, or 303 "Tax on domestic sales". 
  • If a 0% VAT rate is selected for the transaction, it accumulates in section "309 Turnover subject to 0% tax rate".

EUMY EU sales

  • Does not cause an entry in the VAT receivable or liability accounts. 
  • Appears in the periodic tax return in section "311 Sale of goods to other EU countries". 
  • The system always records the VAT rate as 0%.

EUUM Non-EU sales

  • Does not cause an entry in the VAT receivable or liability accounts. 
  • Appears in the periodic tax return in section "309 Turnover subject to 0% tax rate". 
  • The system always records the VAT rate as 0%.

KOOS Domestic purchase

  • The amount of tax is recorded in the VAT receivable account and appears in the periodic tax return in section "307 Deductible tax for the target month".

EUOS EU purchase

  • The amount of tax is recorded in both the VAT receivable and liability accounts and appears in the periodic tax return in sections "305 Tax on goods purchased from other EU countries" and "307 Deductible tax for the target period". 
  • Additionally, the tax base appears in the periodic tax return in section "313 Goods purchased from other EU countries". 
  • NOTE! If the tax is not deductible, use the code EVTO.
     

EUPO EU service purchase

  • The amount of tax is recorded in both the VAT receivable and liability accounts and appears in the periodic tax return in sections "306 Tax on services purchased from other EU countries" and "307 Deductible tax for the target period". 
  • Additionally, the tax base appears in the periodic tax return in section "314 Services purchased from other EU countries". 
  • NOTE! If the tax is not deductible, use the code EVPO.

EUUO Non-EU purchase

  • Does not cause an entry in the VAT receivable or liability accounts. 
  • Does not appear in the periodic tax return. 
  • The system always records the VAT rate as 0%.

100% 100% deductible tax

  • Fully recorded in the VAT receivable account. 
  • Appears in the periodic tax return in section "307 Deductible tax for the target month".
  • The system always records the VAT rate as 0%, but the full amount appears as the tax base.

EUPM 312 EU service sales

  • Reverse charge in the destination country, appears in the periodic tax return field 312. 
  • Use of VAT percentage is not allowed.
  • The buyer of the services pays the tax based on the reverse charge in the EU country where the service is delivered.

EUPM 309 EU service sales

  • No reverse charge, appears in the periodic tax return field 309. 
  • Use of VAT percentage is not allowed.
  • Sale of services to consumers in another EU country, services related to real estate, restaurant and catering services, and rental of means of transport.

EVTO Goods purchased from other EU countries, non-deductible

  • The amount of tax is recorded in the VAT liability account and appears in the periodic tax return in section "305 Tax on goods purchased from other EU countries" but NOT in section "307 Deductible tax for the target period". 
  • Additionally, the tax base appears in the periodic tax return in section "313 Goods purchased from other EU countries". 
  • NOTE! If the tax is deductible, use the identifier EUOS.

EVPO Services purchased from other EU countries, non-deductible

  • The amount of tax is recorded in the VAT liability account and appears in the periodic tax return in section "306 Tax on services purchased from other EU countries" but NOT in section "307 Deductible tax for the target period". Additionally, the tax base appears in the periodic tax return in section "314 Services purchased from other EU countries". NOTE! If the tax is deductible, use the identifier EUPO

EVKV Non-deductible reverse charge

  •  The amount of tax is recorded in the VAT liability account and appears in the periodic tax return in section "301-303 Tax on domestic sales by tax rates" but NOT in section "307 Deductible tax for the target period".

KÄVE Reverse charge

  • The amount of tax is recorded in both the VAT receivable and liability accounts and appears in the periodic tax return in sections "301-303 Tax on domestic sales by tax rates" and "307 Deductible tax for the target period".

(Old identifier) MUUL Other VAT-exempt turnover (310) 

  • Used to specify transactions that are outside the scope of VAT, tax-exempt sales occurring in Finland, for which the VAT included in related purchases is not deductible. 
  • These transactions do not appear in the periodic tax return section 309 "Turnover subject to 0% tax rate".
  • If purchases related to sales subject to a 0% tax rate are deductible, use the VAT identifier KOMY Domestic sales and select a 0% VAT rate for the transaction, so that the transaction accumulates in the periodic tax return section 309 "Turnover subject to 0% tax rate".
  • NOTE! As of 1.1.2011, the information "310 Other VAT-exempt turnover" was removed from VAT data. This information can still be transmitted for the target periods of 2010.

RAMY – Sale of construction services

  • Reverse charge for construction services introduced on 4.2011
  • Does not cause an entry in the VAT receivable or liability accounts.
  • Appears in the periodic tax return in section "319 Sales of construction services". 
  • The system always records the VAT rate as 0%.
     

RAOS – Purchase of construction services

  • Reverse charge for construction services introduced on 1.4.2011
  • The amount of tax is recorded in both the VAT receivable and liability accounts and appears in the periodic tax return in sections "318 Tax on purchases of construction services" and "307 Deductible tax for the target period" and additionally, the tax base appears in the periodic tax return section "320 Purchases of construction services".

EVRO – Non-deductible purchase of construction services

  • Reverse charge for construction services introduced on 4.2011
     The amount of tax is recorded in the VAT liability account and appears in the periodic tax return in sections "318 Tax on purchases of construction services"
  • Additionally, the tax base appears in the periodic tax return section "320 Purchases of construction services".

MAAL Non-EU import VAT

  • Available from 1.1.2018
  • The amount of tax is recorded in both the VAT receivable and liability accounts and appears in the periodic tax return in section "304 Tax on imports of goods from outside the EU” and "307 Deductible tax for the target period".
  • Additionally, the tax base appears in the periodic tax return in section "310 Imports of goods from outside the EU”.
  • NOTE! If the tax is not deductible, use the code EVMA

EVMA Non-EU import VAT non-deductible

  • Available from 1.1.2018
  • The amount of tax is recorded in the VAT liability account and appears in the periodic tax return in section "304 Tax on imports of goods from outside the EU” but NOT in section "307 Deductible tax for the target period".
  • Additionally, the tax base appears in the periodic tax return in section "310 Imports of goods from outside the EU”.
  • NOTE! If the tax is deductible, use the identifier MAAL.

Instructions for using import VAT codes can be found further down this page.

KOMY 0% 

The identifier behaves like KOMY when using a 0% VAT rate. This is included in the VAT calculation in section "309 Turnover subject to 0% tax rate". 

  • The addition was made due to the requirements of the EU e-invoicing standard, so that a different e-invoicing tax code can be used for domestic tax-exempt sales than KOMY.
  • According to the EU e-invoicing standard, an invoice cannot have both taxable and tax-exempt sales. The entire invoice must be either tax-exempt or taxable.
  • The default "S (normal tax rate)" for KOMY does not allow a VAT value of 0%. The default tax code for the new VAT identifier is "O (tax-exempt service)".

Handling of VAT in transactions

In the editing of transactions saved before 27.1.2006, the VAT identifier was not selected, and it could be left unselected during editing. For these old transactions, the handling of the previous version is followed. If a VAT identifier is selected for an old transaction, the transaction follows the new procedure. For all new transactions, the VAT identifier is mandatory.

The amount of value-added tax according to the VAT rate selected for the transaction lines, or automatically defined from default data, is calculated and proposed for recording. The user can change the default VAT identifier of the transaction line as needed.
During the recording of purchase and sales ledger entries, the value-added tax entry is automatically performed as an accounting transaction line using the net method.
Transaction-specific value-added taxes are recorded in the VAT receivable or VAT liability account according to the VAT identifier. VAT posting accounts can be defined in the accounting basic information under default postings.


Exceptional situations:
If the VAT rate on the transaction line is left unmarked or marked as 0% with VAT identifiers that expect a VAT rate, the transaction will not be included in the VAT settlement calculation as the tax base.

If the VAT identifier for the transaction is selected as No VAT handling, the system always records the VAT rate as 0% regardless of what the user has selected as the VAT rate.

If a VAT rate is marked on the transaction line, but the net method has not been implemented during editing (VAT receivable or liability has not been recorded or the line has been deleted), the sums of the VAT period-ending calculation will differ from the sums of the period-ending voucher mentioned later. Such transactions must be corrected.

Reconciliation and handling of rounding differences

The calculated tax portions for payable and receivable tax are compared to the tax recorded in the VAT liability and VAT receivable accounts. When the sums match, it can be ensured that the entries have been technically made correctly. The VAT sums accumulated from the VAT bases are calculated for the period-ending voucher. After the closing entry, the VAT receivable and liability accounts for the period are zeroed, and their balance is transferred to the tax account.
A possible difference of a few cents due to calculation can be recorded as a rounding difference during the closing entry. It is advisable to handle the rounding difference always in connection with the VAT entry using the system's own function.
The VAT calculation accumulates the tax bases according to the VAT identifier and rate, from which the calculated tax is reconciled with the recorded tax. The calculation takes into account the calculated rounding difference, which arises between the total tax portion summed by transaction and the tax portion calculated from the tax base.
If the difference is more than a few cents, the difference must be investigated. Possible transactions according to the error situation can be searched using the auxiliary links in the VAT calculation.

Handling of import VAT

The value-added taxation of imports was transferred from Customs to the Tax Administration on 1.1.2018, and the tax and tax base for imports are reported independently on the value-added tax return, like other business transactions for the tax period. There are no changes in the calculation of the VAT base for imports compared to the previous method. The customs clearance date determines the timing. For imports from Åland, the tax is allocated to the month in which the tax liability arises, as Customs does not make a customs clearance decision for those registered for VAT between Åland and mainland Finland. The change in the value-added taxation procedure applies to all entities registered for VAT.


Two new VAT codes have been added to Netvisor, with which import transactions are recorded and then directed to the VAT calculation and the self-initiated tax return in reporting:

  • MAAL: ‘Non-EU import VAT’
  • EVMA: ‘Non-EU import VAT non-deductible’

Below are examples of using the new codes and the transactions formed on the self-initiated tax return based on them.

               

               

             

When a purchase invoice related to import has already been recorded and a customs clearance decision is received later, we recommend that the change of the VAT code is primarily made through the purchase invoice, if possible. In this case, the purchase invoice is opened in edit mode and the VAT code is changed to MAAL or EVMA as appropriate. Another option is to make a manual entry as described in section 2 above, to report the customs value to the correct period.  

More information on the change in the value-added taxation procedure for imports can be found:

In the Tax Administration's guide:  https://www.vero.fi/syventavat-vero-ohjeet/ohje-hakusivu/61955/maahantuonnin-arvonlis%C3%A4verotusmenettelyst%C3%A4-1.1.2018-alkaen/

In the article related to the topic in Tilisanomat: https://tilisanomat.fi/verotus/maahantuonnin-arvonlisaverotus-muuttuu

                                               

Periodic tax return

From January 2010 events onwards, a periodic tax return is submitted instead of the previous control report, and payment is made to the tax account using a standard reference. Unclaimed value-added tax is no longer deducted on the next target period's periodic tax return, but it appears as a balance on the tax account.


Keywords: VAT handling, VAT identifiers


Attachments to the guide:


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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