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When do I have to correct the VAT settlement manually?

If you change the VAT reporting method (from the effective to the balance tax rate method or vice versa) or the VAT billing method (from agreed upon to collected compensation or vice versa), then the VAT postings will always be posted in accordance with the current settings and displayed in the VAT form that is automatically generated by bexio. Please consult the Swiss VAT Act and its regulations, or consult with your trustee about your proposed change. Generally speaking, changes may only be made at the beginning of the calendar year.

Example:

  • 2016 = Effective method, billing based on agreed upon compensation (time of invoice)
  • 2017 = Effective method, billing based on collected compensation (time of payment receipt)

You create an invoice with an invoice date in 2016. According to the agreed upon compensation billing method, the VAT is due at the time of invoicing and is declared by bexio in the Q4/2016 VAT form. If the payment is made in 2016, then this will not have any impact if you were to later change your billing method.

If the payment is made in 2017 and the billing method is also changed during this year, bexio will declare the received payment in the Q1/2017 VAT form as remuneration and calculate the corresponding VAT tax in accordance with this. In order to avoid filing a double return, VAT billing has to be adjusted accordingly in the first quarter. Please note the information in the VAT Regulation "Changing the billing method in accordance with the effective method" or contact your trustee.

The same procedure applies to changing VAT reporting methods when changing the billing method at the same time.

Example:

  • 2016 = Effective method, billing based on agreed upon compensation (time of invoice)
  • 2017 = Balance tax rate (SSS) method, billing based on collected compensation (time of payment receipt)

Please note VAT note 12 "Changing from the effective billing method to the balance tax rate method" or contact your trustee when making such a change.

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The document date and the payment date are shown separately in the VAT ledger. You can use this ledger to identify postings in the transitional phase and to make appropriate adjustments or corrections. Special attention should be paid to such postings as cash discounts, currency gains and losses, and tax on the purchase of foreign goods and services (Bezugsteuer).

Basically, we would like to point out that bexio does not offer any software support for making VAT adjustments when you change your VAT reporting method and/or VAT billing method. In these cases, you should contact your trustee.

 

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