Use VAT in EZYcount
You’ll find below a summary about VAT and how to make related bookings:
- VAT model: effective rate or net tax rate:
- Make bookings with VAT
- Make bookings with a 100% VAT rate
- Make bookings following the VAT official report
- Useful Links
1) VAT model: effective rate or net tax rate. (Ask your trustee to advise you which one you should use). During company creation, EZYcount setup the most used VAT codes.
- VAT effective : usual VAT model
- Net tax rate : special VAT model. To use this, the FTA (Federal Tax Administration) need to give his approbation.
- If you change from the effective model to the net tax rate, please contact EZYcount support. We will control that all the right VAT codes are activated (900 and following) and that the VAT is activated on the right accounts in the chart of account.
2) Make bookings with VAT
During a booking, if the debit account or the credit account accept VAT (for example revenues or expenses accounts) then it is possible to insert a VAT code.
The VAT code determine the percentage of VAT (for example 8%) and the attribution in the VAT official report.
VAT codes can be divided in two categories: sales codes and purchase codes. VAT codes description explain in details the purpose of each code.
The creation of a booking with VAT generates two booking entries. Here is an example:
The same booking number is used for both entries. The amount of 200.- is divided between the amount booked on the sales account and the one booked on the VAT paid account.
It is not possible to modify directly the VAT entry. To do so, you have to modify the main entry.
The standard chart of accounts has two basic VAT accounts : “1170 Input VAT” for purchases and “2200 VAT owed” for sales.
3) Bookings with a 100% VAT rate
Booking with a 100% VAT rate need to be done following the model below:
It is very important NOT to create a booking directly in the account 1170 but to create a booking in a purchase account with the VAT code 100%. The system generates an entry in the purchase account with 0.- and the totality of the amount is booked as VAT in the 1170 account. With this, the VAT official report is correct.
If you pass directly a booking in the account 1170, the numbers in the VAT official report will not be correct.
4) Bookings following the official VAT report
When you send the official VAT report you need to regroup the total of the VAT accounts (1170 Input VAT and 2200 VAT owed) in a third account: 2201 VAT refund. The total of the two bookings equals the total of the official VAT report.
Total VAT owed is 920.54 (rounded to 921 at the next unit as required by the federal authority), the total of the VAT input is 198.63 (rounded to 199). The bookings are :
2201 VAT refunds à 1170 Input VAT 198.63
2200 VAT owed à 2201 VAT refunds 920.54
The total of the two bookings is then 920.54 – 198.63 = 721.91 as the official VAT report state.
When you pay the VAT or when you receive a reimbursement from the FTA, you can book it directly between the 1020 bank and the 2201 VAT refund.
5) Useful links
FTA website : http://www.estv.admin.ch/mwst/aktuell/index.html?lang=fr
VAT registration : http://www.estv.admin.ch/mwst/dienstleistungen/00229/index.html?lang=fr
Foreign currency rates by the FTA : http://www.estv.admin.ch/mwst/dienstleistungen/00304/index.html?lang=fr