Set up and settle input tax

Tutorial: CashCtrl supports the accounting with input tax, which together with the sales tax forms the value added tax. This tutorial shows how to configure tax rates and how to account for VAT correctly.


Screenshot of the sales tax report in CashCtrl

1. Enter input tax rates

Before entries are recorded, the tax rates must be set up. This is done under Settings Tax rates. Three input tax rates are already configured by default. Via Add you can create your own tax rates or via Edit or double-click existing tax rates can be adjusted.

Existing tax rates can only be modified or deleted if no entries have been made with them. Otherwise the rate can be deactivated, deactivated rates will no longer be suggested when posting.

Screenshot of the tax rate settings dialog

2. Configuration of input tax

There is no need for special configuration of input tax. The input tax is entered in the assets on "1170 Input tax", the calculation base is the net amount. If different accounts are used, the appropriate account can be selected here.

If no net/ flat tax rate is used, this field is to be ignored. Confirm the configuration with Save.

Screenshot of the tax rate edit dialog

3. Assign a tax rate to an account

Now the tax rate can be assigned to an account. This is done in the Accounts module. Double-click on the desired account to open the edit dialog.

Now select the tax rate and finish with Save. All entries made to this account from now on will contain the input tax selected here.

Screenshot of the edit dialog of an account for storing an input tax rate

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.

Screenshot of the sales tax report in CashCtrl

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.

Screenshot of the transfer from the input tax account to the VAT account

6. Good to know

  • For postings without an expense/income account, CashCtrl prefers to apply the input tax rate to the asset account. If two asset accounts are involved, the tax rate is applied to the debit account.
  • Changes or inactivating tax rates do not affect past entries and documents. These are independent. Changes only affect future entries or when existing entries are opened, changed and saved again.
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