April 2026: Update of tax rates tax codes.
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Value added tax (VAT) Guide
Tutorial: Configure tax codes and adjust tax rates, then assign them to income or expense accounts. Next, retrieve the VAT figures and download them as an .xml file for e-VAT.
- Overview of Tax Codes
- Explanation of Tax Code Configuration
- Assigning Tax Codes to Accounts
- Transferring Input Tax (optional)
- VAT Reports
- Downloading E-VAT for the FTA
- Configuration for Non-VAT-Registered Businesses
- Good to Know
1. Overview of Tax Codes
Open the dialog via Settings Tax Codes. By default, 20 tax codes are predefined.
- BN1, BN2, BR1, BR2
Acquisition tax with or without input tax with standard or reduced rate - SS1 und SS2
pre-defined flat-rate schemes: all you need to do is entering your own flat-rate - U0A, U0E
VAT exempt - UN1, UR1, US1
VAT standard, reduced or special rate - V0I
Input tax import - VN1, VR1, VS1
Input tax materials & services standard, reduced or special rate - VN2, VR2, VS2
Input tax investments & other operating expenses standard, reduced or special rate - VZ1, VZ2
- Customs duties with 100% tax rates for materials & services resp. investments & other operating expenses
2. Tax Code Configuration explained
Open the configuration of an existing tax code via Edit.
Fields Explained
- Code: Internal identifier for differentiation. Can be changed at any time.
- Description (multilingual ): Internal name of the tax code in the list. Do not enter the tax rate here. Can be changed at any time.
- Description on documents (multilingual ): Name displayed, e.g., on invoices
- With tax rate: For the label on documents (see preview next to it)
Components: Tax codes can contain one or more tax components. In the standard case, there is only one component. This is configured like this:
- Form number(s): for the VAT form
- Account: to which the tax is booked
- Calculation basis: By default, % of the net amount
- Application rule: whether the tax rate should be applied to the debit or credit side, etc. (LEGACY was the previous “Magic” tax rate that served as the basis for the tax rates)
Tax rates: The tax rate calculated via the tax code is entered here. There must always be exactly one tax rate without a validity date.
- Valid from: For changes to the tax rate, the validity date is entered here
- Tax rate: Percentage of the tax rate
- Balance/flat-rate tax rate: If applicable, enter the rate here
| Code | Description | Accounts | Form numbers | Tax rate | Calculation basis | Rule of application | ||||||||||||
| BN1 | Acquisition tax with input tax standard rate | 2200, 1170 | 383, 400 | 8.1% | % of net amount | See acquisition tax tutorial | ||||||||||||
| BN2 | Acquisition tax without input tax standard rate | 2200 | 383 | 8.1% | % of net amount | See acquisition tax tutorial | ||||||||||||
| BR1 | Acquisition tax with input tax reduced rate | 2200, 1170 | 383, 400 | 2.6% | % of net amount | See acquisition tax tutorial | ||||||||||||
| BR2 | Acquisition tax without input tax reduced rate | 2200 | 383 | 2.6% | % of net amount | See acquisition tax tutorial | ||||||||||||
| SS1 | Flat rate scheme 1 | 2200 | 200, 323 | 8.1% | % of net amount | Sales tax, apply to revenue account, then to the credit side | ||||||||||||
| SS2 | Flat rate scheme 2 | 2200 | 200, 323 | 8.1% | % of net amount | Sales tax, apply to revenue account, then to the credit side | ||||||||||||
| U0A | VAT exempt services abroad | 2200 | 200, 221 | 0.0% | % of net amount | Sales tax, apply to revenue account, then to the credit side | ||||||||||||
| U0E | VAT exempt export | 2200 | 200, 220 | 0.0% | % of net amount | Sales tax, apply to revenue account, then to the credit side | ||||||||||||
| UN1 | VAT standard rate | 2200 | 200, 303 | 8.1% | % of net amount | Sales tax, apply to revenue account, then to the credit side | ||||||||||||
| UR1 | VAT reduced rate | 2200 | 200, 313 | 2.6% | % of net amount | Sales tax, apply to revenue account, then to the credit side | ||||||||||||
| US1 | VAT special rate | 2200 | 200, 343 | 3.8% | % of net amount | Sales tax, apply to revenue account, then to the credit side | ||||||||||||
| V0I | Input tax import | 1170 | 400 | 0.0% | % of net amount | Input tax, apply to expense account, then to the debit side | ||||||||||||
| VN1 | Input tax materials & services standard rate | 1170 | 400 | 8.1% | % of net amount | Input tax, apply to expense account, then to the debit side | ||||||||||||
| VN2 | Input tax investments & other operating expenses standard rate | 1170 | 405 | 8.1% | % of net amount | Input tax, apply to expense account, then to the debit side | ||||||||||||
| VR1 | Input tax materials & services reduced rate | 1170 | 400 | 2.6% | % of net amount | Input tax, apply to expense account, then to the debit side | ||||||||||||
| VR2 | Input tax investments & other operating expenses reduced rate | 1170 | 405 | 2.6% | % of net amount | Input tax, apply to expense account, then to the debit side | ||||||||||||
| VS1 | Input tax materials & services special rate | 1170 | 400 | 3.8% | % of net amount | Input tax, apply to expense account, then to the debit side | ||||||||||||
| VS2 | Input tax investments & other operating expenses special rate | 1170 | 405 | 3.8% | % of net amount | Input tax, apply to expense account, then to the debit side | ||||||||||||
| VZ1 | Customs duties materials & services | 1170 | 400 | 100.0% | % of gross amount | Input tax, apply to expense account, then to the debit side | ||||||||||||
| VZ2 | Customs duties investments & other operating expenses | 1170 | 405 | 100.0% | % of gross amount | Input tax, apply to expense account, then to the debit side |
3. Set Tax Codes for Accounts
To avoid having to enter tax codes manually every time, you can set them for revenue or expense accounts. To do this, select the desired account via Accounts and click Edit.
In the Tax Code field, select the desired tax code and click Save to save the settings.
The tax code will now be automatically applied to every book entry posted to the account. Of course, the tax code can be manually removed or changed during the booking process.
4. Transfer Input Tax (optional)
If input tax applies, it is transferred to the sales tax account in the journal via a semi-automatic booking. To do this, click More Special Bookings Transfer VAT/Input Tax Liability in the journal.
In the dialog box, select the quarter; the fields for the sales tax account, input tax account, and the account for any rounding differences are pre-filled. The calculated input tax amount is automatically entered; now complete the booking by clicking Save.
5. VAT reports
Open the VAT report collection via Reports.
If not all reports are available yet (for organizations created before May 2026), create the reports via Add VAT.
VAT Settlement shows the tax owed, structured by form number.
VAT Evaluation displays any discrepancies between the account balances and the calculated tax.
VAT Journal lists all book entries booked with tax codes.
6. Download E-VAT for the FTA
Go to the VAT settlement report and click on Download E-VAT (XML). The following options are available:
- Initial submission
- Adjustment statement
7. Configuration for Non-VAT-Registered Businesses
There is no ON/OFF button for VAT :-) If you do NOT intend to use VAT, do not assign any tax codes to the accounts. To be on the safe side, you can also set all tax rates to "inactive" so that they cannot be used at all in book entries or orders.
Good to know
- If a tax code that has already been used is no longer needed, it cannot be deleted. Check the "Inactive" box so that its appearance is grayed out and it is no longer suggested during book entries.
- Manual book entries to the sales tax or input tax account are summarized in the VAT report via Discrepancy from Balance Direct Postings
- The settlement method is set to "Agreed" by default. If this is changed to "Received," it has no effect on book entries already made
- Retroactively taxable? Information in this in this forum post
- Go to the Federal Tax Administration (FTA): Link
