VAT Codes: Applying and Adjusting Modified VAT Rates

Managing VAT codes effectively is essential for ensuring accurate financial tracking.

This guide will help you apply modified VAT rates and adjust the VAT percentage as needed for your internal accounts.

How to Apply Modified VAT

  1. Access Postings
    Navigate to Administration > Settings > Postings.
    In the dropdown menu for Internal account, select and apply the necessary modifications.

  2. Set Up Modified VAT Options
    Go to Administration > Chart of Accounts and open the Modified VAT tab.
    Configure the VAT options that will be linked to the relevant internal accounts. These options should correspond to the specific accounts that require VAT adjustments.

  3. Track Surplus VAT
    If there’s any remaining VAT that needs to be accounted for, it’s possible to allocate it to a specific account. This allows for accurate tracking of any surplus VAT amounts.

Adjusting VAT Percentage for Deductions

  1. Access Internal Accounts
    Navigate to Administration > Internal Accounts.

  2. Modify Cost Center VAT
    Click on Cost Center and then open the Account Codes tab. Select the appropriate cost center and adjust the VAT percentage that should be deducted for that specific account.

By following these steps, you can ensure that your VAT codes and rates are accurately applied and monitored, helping you maintain clear financial records and compliance with VAT regulations.