How to use value added tax (VAT)

Tutorial: Set up VAT rates, keep accounting correct and prepare for tax return.

Content 

  1. Define tax rates
  2. Set tax rate in accounts
  3. Display value added tax
  4. Configuration for companies not subject to VAT
  5. Good to know
Screenshot der Steuersätze in CashCtrl

1. Enter tax rates

If the own company is liable to VAT, the tax rates must be set up before entries are made. Via Settings Tax rates the tax rate dialog is opened. By default, three VAT rates are available. You can add your own tax rate or modify an existing one.

An existing tax rate can only be modified or deleted if it is not referenced in any book entry. If a tax rate has already been used, it can be set as inactive so that it is no longer suggested in a book entry.

The net tax/flat tax rate field can be left empty unless a net tax/flat tax rate is to be used. Link to the tutorial

Screenshot der Erfassung eines Steuersatzes in CashCtrl

2. Assign tax rate to an account

The tax rates can now be assigned to the revenue accounts. In the Accounts module, double-click on the desired account to open the editing dialog. Select the tax rate and finish by clicking Save. All entries that are booked to this account from now on will contain the VAT rate selected here.

Screenshot der Zuweisung eines Steuersatzes für ein Ertragskonto

3. Display 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 half-yearly statement, select Period select  2023  S1 or S2 (second semester) at the top right. Quarters or months are also available for selection.

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

Screenshot des Umsatzsteuerberichts in CashCtrl

4. Configuration for companies not subject to VAT

If NO VAT is to be used, then no tax rates need to be stored in the accounts. To be on the safe side, all tax rates can also be deleted so that they cannot be used in bookings or orders.

There is no setting for this that needs to be made, or an ON/OFF button :-)

Good to know

  • For entries without an expense/income account, CashCtrl prefers to apply the VAT rate to the liability account. If two asset accounts are involved, the tax rate is applied to the credit account.
  • If a tax rate that has already been used is no longer required, it cannot be deleted. Instead, you can check the "inactive" box so that it appears grayed out and is no longer suggested for bookings.
  • Manual bookings to the VAT account are not included in the VAT report.
  • The balances of a VAT account can be viewed via the account journal or the account statements report
  • If input tax is also applied, the corresponding tutorial can be found here
  • The accounting method is set to agreed by default. If this is changed to received, this has no effect on bookings that have already been made.
  • Go to Federal Tax Administration FTA: Link
Additional Links

Tutorial: Net tax rate / flat tax rate

Tutorial: Input tax

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