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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?
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.
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%.
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
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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