This guide covers the handling of Value Added Tax (VAT) in the Netvisor system, focusing on VAT identifiers, accounting procedures, and import taxation.       

CONTENT

Handling of value added tax in Netvisor

The Netvisor accounting system is based on the net booking procedure, where the accounting transaction always ends up in a net booking and where VAT shares are recorded as separate transaction lines. This way, the income and balance sheet reporting of the accounting is always available without any corrections occurring in connection with the handling of the VAT period.

In Netvisor, there is a VAT identifier and tax rate on transaction lines. They are used to guide the calculation and reporting of value added tax. Based on the VAT identifier, the transaction comes to 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 directly with the Tax Administration. The instructions below will help you choose the correct identifier in Netvisor based on this information.

In the accounting chart of accounts, default VAT identifiers can be set for accounts, which are also used by the system's default posting functions. VAT rate-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 Netvior in pdf: VAT codes

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

No VAT handling (-)

  • The transaction does not appear in the VAT calculation or 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 under section 301, 302, or 303 "Tax on domestic sales". 
  • If a 0% VAT rate is selected for the transaction, it accumulates the section "309 Turnover subject to 0 tax rate".

EUMY EU sales

  • Does not cause a posting to VAT receivable or liability accounts. 
  • Appears in the periodic tax return under 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 a posting to VAT receivable or liability accounts. 
  • Appears in the periodic tax return under 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 under 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 under 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 under section "313 Goods purchased from other EU countries". 
  • NOTE! If the tax cannot be deducted, 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 under 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 under section "314 Services purchased from other EU countries". 
  • NOTE! If the tax cannot be deducted, use the code EVPO.

EUUO Non-EU purchase

  • Does not cause a posting to 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

  • Recorded entirely in the VAT receivable account. 
  • Appears in the periodic tax return under 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 on these services 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 under section "305 Tax on goods purchased from other EU countries" but NOT under section "307 Deductible tax for the target period". 
  • Additionally, the tax base appears in the periodic tax return under section "313 Goods purchased from other EU countries". 
  • NOTE! If the tax can be deducted, 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 under section "306 Tax on services purchased from other EU countries" but NOT under section "307 Deductible tax for the target period". Additionally, the tax base appears in the periodic tax return under section "314 Services purchased from other EU countries". NOTE! If the tax can be deducted, 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 under sections "301-303 Tax on domestic sales by tax rates" but NOT under 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 under sections "301-303 Tax on domestic sales by tax rates" and "307 Deductible tax for the target period".

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

  • Used to differentiate transactions from those outside the scope of VAT, tax-free sales occurring in Finland, for which VAT included in related purchases cannot be deducted. 
  • 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 0 tax rate are deductible, use the VAT identifier KOMY Domestic sales and select a 0% VAT rate for the transaction to accumulate the periodic tax return section 309 "Turnover subject to 0 tax rate".
  • NOTE! The information "310 Other VAT-free turnover" was removed from VAT data as of 1.1.2011. The information can still be transmitted for target periods in 2010.

RAMY – Sale of construction services

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

RAOS – Purchase of construction services

  • Reverse VAT liability for construction services introduced in 1.4.2011
  • The amount of tax is recorded in both the VAT receivable and liability accounts and appears in the periodic tax return under 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 under section "320 Purchases of construction services".

EVRO – Non-deductible purchase of construction services

  • Reverse VAT liability 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 under sections "318 Tax on purchases of construction services"
  • Additionally, the tax base appears in the periodic tax return under 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 under 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 under section "310 Imports of goods from outside the EU”.
  • NOTE! If the tax cannot be deducted, 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 under section "304 Tax on imports of goods from outside the EU” but NOT under section "307 Deductible tax for the target period".
  • Additionally, the tax base appears in the periodic tax return under section "310 Imports of goods from outside the EU”.
  • NOTE! If the tax can be deducted, use the identifier MAAL.

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

KOMY 0% 

The identifier behaves like KOMY when using a VAT rate of 0. This is included in the VAT calculation under the 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-free sales than KOMY.
  • According to the EU e-invoicing standard, the same invoice cannot have both taxable and tax-free sales. The entire invoice must be either tax-free or taxable.
  • KOMY's default "S (normal tax rate)" does not allow a VAT value of 0%. The default tax code for the new VAT identifier is "O (tax-free service)".

Handling of VAT in transactions

In editing transactions recorded before 27.1.2006, the VAT identifier is not selected, and it could be left unselected during editing. For these old transactions, the previous version's handling 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 line or automatically defined from default data is calculated and proposed for posting. The user can change the default VAT identifier of the transaction line as needed.
During purchase and sales ledger postings, the value added tax posting is automatically performed as an accounting transaction line using the net method.
Transaction-specific value added taxes are posted to the VAT receivable or VAT liability account according to the VAT identifier. VAT posting accounts can be defined in the accounting basic data under default postings.
Exceptional situations:
If the VAT rate on the transaction line is left unmarked or marked as 0% with VAT identifiers expecting a VAT rate, the transaction will not appear as the tax base in the VAT settlement calculation.

If the transaction's VAT identifier 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 is not realized during transaction editing (VAT receivable or liability is not recorded or the line is 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

Calculated tax shares for payable and receivable tax are compared to the tax recorded in VAT liability and VAT receivable accounts. When the sums match, it can be ensured that the postings are technically done correctly. The period-ending voucher calculates transaction-specific VAT sums accumulated from VAT bases. After the final posting, the VAT receivable and liability account for the period are zeroed, and their balance is transferred to the tax account.
A possible rounding difference of a few cents resulting from the calculation can be recorded as a rounding difference during the final posting. It is advisable to handle the rounding difference always in connection with the VAT posting using the system's own function.
The VAT calculation accumulates 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 sum of transaction-specific tax shares and the tax share calculated from the tax base.
If the difference is more than a few cents, the difference must be investigated. Possible transactions corresponding to the error situation can be searched using the auxiliary links in the VAT calculation.

Handling of import VAT

Import value added taxation was transferred from Customs to the Tax Administration on 1.1.2018, and the tax and tax base on imports are reported independently on the value added tax return, like other business transactions related to the tax period. There are no changes in the calculation of the import VAT base compared to the previous method. The timing is determined by the customs decision's customs date. For imports from Åland, however, the tax is allocated to the month in which the tax liability arose, as Customs does not make a customs decision for those registered for VAT in imports between Åland and mainland Finland. The change in the value added taxation procedure affects 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 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 the purchase invoice related to the import has already been recorded and a customs 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 according to the situation. The second option is to record a manual entry as described in section 2 above, which allows the customs value to be reported for the correct period.  

More information on the change in the import value added taxation procedure can be found, among others, in: 

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

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

Periodic tax return

From January 2010 transactions 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. Undeducted 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.

Attachments to the guide:

Keywords: net booking, VAT identifier, accounting, import, rounding difference, periodic tax return.

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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