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Dynamics 365 Community / Forums / Finance | Project Operations, Human Resources, ... / Switzerland VAT - Foun...
Finance | Project Operations, Human Resources, ...
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Switzerland VAT - Foundation - Flat rate method

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Posted on by JJgath 15

Hi there 

Currently helping out a foundation with their F/O implementation.

Switzerland has different VAT-Regulation for foundation.

For Example: a foundation is taxing for their client 7.7% VAT for their services.

Invoice to client: 107.7 CHF inkl.7.7% VAT

Normal process: 7.70 CHF  to the VAT authorities of Switerland

Foundation VAT process: 107.70 CHF x 5.1% = 5.4927 CHF to VAT authorities
And foundation also has no right to deduct the expense VAT. 

I have no idea, how I should handle this process in F/O

Can someone help me out with this? 



  • Community member Profile Picture
    Community member 2 on at
    Switzerland VAT - Foundation - Flat rate method
    Hello JJgath,

    I advise you to go back to a fiduciary in Geneva in Switzerland to find an answer to your question, because in fact, the VAT regulations are special for foundations... If the trustees do not give you free information by phone, you can also contact the VAT department in Bern (Switzerland) directly and they will be able to answer you efficiently.
     
    Have a good day,
     
    Best post
  • JJgath Profile Picture
    JJgath 15 on at
    RE: Switzerland VAT - Foundation - Flat rate method

    Dear Ludwig

    Do you comeup with a idea? ^^

    www.fiduciaire-bonnefous.com/.../

  • jjthes Profile Picture
    jjthes 10 on at
    RE: Switzerland VAT - Foundation - Flat rate method

    HI Bharat ^^

    lets discuss it today night...bye

  • jjthes Profile Picture
    jjthes 10 on at
    RE: Switzerland VAT - Foundation - Flat rate method

    Dear Ludwig

    Thx for your response.

    For the customer invoices, don't you need to simply apply a different tax rate (5.1% instead of 7.7%)?

    No! Foundation is taxing their customers with 7.7% VAT. (It has to be declared seperatly on the invoice)

    (I know its totally nonsens) But the foundation is only declare 5.1% VAT to the VAT-authorities.

  • Bharath jain Profile Picture
    Bharath jain 846 on at
    RE: Switzerland VAT - Foundation - Flat rate method

    Hi Jeno,

    For the above scenario you can use Non-deductible percentage option.  You can configure this in the tax code. Once configuration is done you can select 7.7% VAT but for VAT Authority it will only be 5.1%.

  • Suggested answer
    Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at
    RE: Switzerland VAT - Foundation - Flat rate method

    Hello JJgath,

    For the customer invoices, don't you need to simply apply a different tax rate (5.1% instead of 7.7%)?

    For the incoming vendor invoices: If the VAT is not deductible, you can directly expense it. Based on what you describe there is then no incoming VAT posting.

    Should not be difficult to make those setups if you have already a comparable Swiss VAT setup in place to compare.

    Best regards,

    Ludwig

  • MM-20051452-0 Profile Picture
    MM-20051452-0 on at
    RE: Switzerland VAT - Foundation - Flat rate method

    Hi JJgath,

    Could you please share with us the sales tax transaction voucher expectations? As usually, we have 2 basic processes:

    1- Assign a VAT code with percentage of 5.1 only for this customer account.

    2- Update the VAT code percentage with non-deductible percentage to match the final requirement and her non-deductible tax amount will be considered as tax expense.

    Regards,

    Momen Mansour

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