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. In the net booking procedure:

  • the accounting transaction always results in a net entry
  • VAT portions are recorded as separate transaction lines
  • the income statement and balance sheet reporting are always available without adjustments made in connection with the processing of the VAT period.

In Netvisor, use a VAT identifier and tax rate on transaction lines. With these you:

  • guide the calculation and reporting of value-added tax
  • ensure that the transaction is placed in the correct group in the VAT calculation and periodic tax return based on the VAT identifier.

If you do not know where you want the transaction to appear in the VAT calculation and return:

  • verify the correct section, for example, directly with the Tax Administration
  • select the VAT identifier in Netvisor based on the instructions below.

You can open the specification of accounts by selecting Bookkeeping > Basic data > Specification of accounts.

  • Set default VAT identifiers for accounts in the specification of accounts.
  • Use these defaults in the system’s default posting functions.
  • Do not create VAT-rate-specific accounts in the specification of accounts; they are not needed.

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 (-)

  • Do not show the transaction 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 the periodic tax return section "309 turnover taxable at zero vat 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 Tavaran myynti muihin EU-maihin". 
  • The system always records the VAT rate as 0%.

If the EUMY identifier is used with the triangular trade setting, the entry does not appear in the periodic tax return section "311 Tavaran myynti muihin EU-maihin" but only on the VAT summary report.


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 taxable at zero vat 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". 
  • The tax base appears in the periodic tax return in section "313 Purchases of goods 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". 
  • The tax base appears in the periodic tax return in section "314 Purchases of services 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

  • Treat the sale as subject to reverse charge in the destination country and let it appear in the periodic tax return field 312. 
  • Do not use a VAT percentage.
  • Note that 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

  • Treat the sale without reverse charge and let it appear in the periodic tax return field 309. 
  • Do not use a VAT percentage.
  • Use the identifier, for example, for the 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". 
  • The tax base appears in the periodic tax return in section "313 Purchases of goods 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". The tax base appears in the periodic tax return in section "314 Purchases of services 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. 
  • Do not expect these transactions to appear in the periodic tax return section 309 "turnover taxable at zero vat 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 taxable at zero vat rate".
  • Note! As of 1.1.2011, the information "310 Other VAT-exempt turnover" was removed from VAT data. This information can only be transmitted for the target periods of 2010.

RAMY – Sales of construction services

  • Use the identifier for sales subject to the reverse charge for construction services introduced in 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 – Purchases of construction services

  • Use the identifier for purchases subject to the 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 the tax base appears in the periodic tax return in section "320 Purchases of construction services".

EVRO – Non-deductible purchase of construction services

  • Use the identifier for non-deductible purchases subject to the reverse charge for construction services introduced in 4.2011
     The amount of tax is recorded in the VAT liability account and appears in the periodic tax return in section "318 Tax on purchases of construction services"
  • The tax base appears in the periodic tax return in section "320 Purchases of construction services".

MAAL non-EU import VAT

  • Use the identifier from 1.1.2018 onwards
  • 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".
  • 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

  • Use the identifier from 1.1.2018 onwards
  • 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".
  • 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% 

Use the identifier like KOMY when you use a 0% VAT rate. The identifier is included in the VAT calculation in section "309 turnover taxable at zero vat rate". 

  • Use the identifier in accordance with the requirements of the EU e-invoicing standard so that a different e-invoicing tax code than KOMY can be used for domestic tax-exempt sales.
  • Note that 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.
  • Note that the default "S (normal tax rate)" for KOMY does not allow a VAT value of 0%. Use the default tax code "O (tax-exempt service)" for the new VAT identifier.

VAT on construction services for own use

Handle the VAT on construction services for own use in Netvisor so that no entries are made to sales accounts, but the expense account to which the expense was previously recorded (purchases) is adjusted. For reporting VAT, treat it as tax on domestic sales. The tax payable on own use is always reported as tax on domestic sales and, technically, when you use the sales VAT code KOMY, the VAT goes to the correct place in the return. Edit the voucher to set the correct VAT code so that it appears in the correct section on the VAT return. If desired, you can create separate accounts in the bookkeeping for this handling.

Sale and purchase of scrap metal

Handle the sale and purchase of scrap metal in value-added taxation in the same way as construction services. Use the RAMY identifier for the sale of scrap metal and the RAOS identifier for the purchase of scrap metal. 


Handling of VAT in transactions

Handle VAT identifiers on transactions as follows:

  • note that for transactions saved before 27.1.2006, no VAT identifier was selected and it can be left unselected during editing
  • for these old transactions, follow the handling of the previous version
  • if you select a VAT identifier for an old transaction, handle the transaction according to the new procedure
  • for all new transactions, the VAT identifier is mandatory.

You can open the transaction entry view by selecting Bookkeeping > Entries > Vouchers.

  • give the transaction lines a VAT rate either by selecting it or by using the VAT rate automatically defined from default data
  • let the system calculate the amount of VAT according to the VAT rate and propose it for recording
  • change the default VAT identifier of the transaction line if necessary.
  • during the recording of purchase and accounts receivable ledger entries, use the automatic value-added tax entry, which is made as an accounting transaction line using the net method
  • record transaction-specific value-added taxes in the VAT receivable or VAT liability account according to the VAT identifier
  • define VAT posting accounts 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, do not expect the transaction to 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 you have 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), note that the sums of the VAT period-ending calculation will differ from the sums of the period-ending voucher. Such transactions must be corrected. 

Reconciliation and handling of rounding differences

Reconcile VAT as follows:

  • compare the calculated tax portions for payable and receivable tax to the tax recorded in the VAT liability and VAT receivable accounts
  • ensure that the sums match so that the entries have been technically made correctly.
  • calculate the VAT sums accumulated from the VAT bases for the period-ending voucher
  • make the closing entry, after which the VAT receivable and VAT liability accounts for the period are zeroed
  • transfer the balance of these accounts to the tax account.

Handle rounding differences as follows:

  • record a possible difference of a few cents due to calculation as a rounding difference during the closing entry
  • always handle the rounding difference in connection with the VAT entry using the system's own function.

Use the VAT calculation as follows:

  • accumulate the tax bases in the VAT calculation according to the VAT identifier and rate
  • reconcile the tax calculated from these with the recorded tax
  • take into account in the calculation 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, investigate the difference
  • search for possible transactions according to the error situation using the auxiliary links in the VAT calculation.

Handling of import VAT

Note the following principles in the value-added taxation of imports:

  • the value-added taxation of imports was transferred from Customs to the Tax Administration on 1.1.2018
  • report the tax payable on imports and the tax base independently on the value-added tax return, like other business transactions for the tax period
  • do not change the calculation of the VAT base for imports; it is the same as before
  • allocate the tax in time according to the customs clearance date of the customs decision
  • for imports from Åland, allocate the tax to the month in which the tax liability has arisen, as Customs does not make a customs clearance decision for those registered for VAT between Åland and mainland Finland
  • note that 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:

  • 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, proceed primarily as follows: 

  • open the purchase invoice in edit mode
  • change the VAT code to MAAL or EVMA as appropriate

 If you cannot change the purchase invoice: 

  • make a manual entry as described above in section 2 so that the customs value is reported for 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

Note the following principles for the periodic tax return:

  • from january 2010 events onwards, submit a periodic tax return instead of the previous control report
  • pay the tax to the tax account using a standard reference
  • do not deduct unclaimed value-added tax on the next target period's periodic tax return
  • note that unclaimed value-added tax appears as a balance on the tax account.


Attachments to the guide:

Keywords: VAT handling, VAT identifiers

Frequently asked questions

How do I select the correct VAT identifier in Netvisor?

  • first decide where you want the transaction to appear in the VAT calculation and periodic tax return
  • if necessary, check the correct section with the Tax Administration
  • based on this, select the VAT identifier according to the descriptions of the identifiers above.

How do I handle VAT on EU purchases in Netvisor?

  • use the EUOS identifier if the tax is deductible
  • use the EVTO identifier if the tax is not deductible
  • let the system record the tax in both the VAT receivable and VAT liability accounts (EUOS) or only in the VAT liability account (EVTO)
  • check that the transactions appear in the correct sections of the periodic tax return (305, 307, 313).

How do I ensure that the VAT calculation reconciles with the bookkeeping?

  • compare the taxes calculated in the VAT calculation with the balances of the VAT liability and VAT receivable accounts
  • make a period-ending voucher that zeroes the VAT receivable and VAT liability accounts and transfers the balance to the tax account
  • handle any difference of a few cents as a rounding difference using the system's own function
  • investigate larger differences using the auxiliary links in the VAT calculation.

How do I handle import VAT in Netvisor?

  • use the MAAL identifier if the import VAT is deductible
  • use the EVMA identifier if the import VAT is not deductible
  • allocate the tax according to the customs clearance date of the customs decision
  • primarily change the VAT code on the purchase invoice to MAAL or EVMA, or if necessary, make a manual entry for the correct period.

How do I handle VAT on construction services for own use?

  • do not record sales to sales accounts
  • adjust the expense account to which the expense was previously recorded
  • use the sales VAT code KOMY so that the tax is reported as tax on domestic sales in the correct section on the VAT return
  • edit the voucher to set the correct VAT code and, if desired, use separate accounts for this handling.

How do I handle VAT on the sale and purchase of scrap metal?

  • handle scrap metal in the same way as construction services
  • use the RAMY identifier for the sale of scrap metal
  • use the RAOS identifier for the purchase of scrap metal.
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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