Set up and settle input tax

CashCtrl supports the use of input tax, which together with the sales tax forms the value added tax. This tutorial shows how to configure the tax rate and finally how to settle it correctly. CashCtrl has predefined input tax rates and VAT rates.

1. Step by step

Before postings are entered, the tax rates must be set up. The tax rate dialog is called up via Settings/tax rates. Three input tax rates are already created as standard. Enter your own tax rate or adjust an existing one.

Existing tax rates can only be adjusted/deleted if no postings were made with them. Otherwise, the rate can be deactivated so that it is no longer proposed when a posting is made.

2. Input tax configuration

No special configuration is required for input tax. The input tax is posted in the assets to "1170 Input tax", the calculation basis is the net amount. Ignore the balance/flat rate field and confirm with Save.

3. Assign tax rates to accounts

Now the tax rate can be assigned to an account. Double-click on the desired account to open the editing dialog. Select the record and finish with Save. All postings that are posted to this account from now on contain the input tax selected here.

4. Read the value added tax

If the VAT statement is due, the period can be selected in the VAT report and the amounts shown can be read. For a semi-annual settlement, the period select  2020  S1 or S2 (second semester) is selected in the upper right-hand corner.

The sales tax report shows the amounts displayed (base/sales and tax) for the selected period. The "Tax due CHF" is already the calculated tax with sales tax minus input tax.

Important: The balances of a VAT account can be viewed via the account journal or the account statements report.

5. Reconcile input tax account

The amounts to 1170 input tax are not automatically transferred to 2200 sales tax. A manual posting is required to clear the input tax with the VAT account.

Enter this as follows: 2200 VAT on sales tax / 1170 Input tax, CHF X.XX. The input tax expended is then deducted from the VAT due.