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When do I have to make a tax rate assignment, and how does it work?

For example, if you switch from the net tax method to the effective method, you will gain access to different billing methods for VAT. When you make this conversion, bexio needs to know which of your net tax rates match your effective tax rates. You can configure this exactly using tax rate assignment.

When do I have to make a tax rate assignment?

You must make an assignment if one of the following situations applies to you:

  • You switch from the net tax method to the effective method in the next calendar year.
  • You switch from the effective method to the net tax method in the next calendar year.

Why is tax rate assignment necessary in bexio?

If you enter invoices that your customers have not yet paid by the end of the year before changing your VAT billing method, you will receive these payments under the new VAT billing method. When payment is received in this scenario, the VAT rates on the invoice will no longer be valid (since they do not match the method), but the payments/discount postings must be posted with the correct VAT rate. To do this, you define which of your VAT rates "belong together" in bexio at the time of assignment.

To illustrate what we mean, take the following example:

In 2018 you use the net tax method, but you switch to effective taxation in 2019.

The tax rate assignment then looks as follows: 2018: Net tax rate UN77(SSS1/51), 2019: Sales tax rate UN77

In December 2018, you create an invoice with the net tax rate UN77(SSS1/51).

You receive the payment for this invoice on January 16, 2019.

The net tax rate UN77(SSS1/51) is no longer valid in 2019, since 2019 is not net taxed.

To post the incoming payment, bexio therefore uses the tax rate that you assigned to the net tax rate UN77(SSS1/51) in the time series for 2019, which in this case is the sales tax rate UN77. 

How does the tax rate assignment work?

The following video shows you how to create a time series in the tax rate assignment. It is important that all tax rates in a time series have the same percentage value (namely the one that you also see on invoices, etc.). 

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You can adjust and delete created assignments (time series) up until the point when they are used in postings.

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