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How do I display primary production?

General Information

Farmers, foresters and gardeners who sell their products for money are considered to be primary producers. Generally speaking, these products, which are also known as primary products, are unprocessed products and are “tax-exempt activities.” If products are purchased from primary producers (not subject to tax), you can now deduct 2.5% of the invoiced amount as input tax (Art. 28 para. 2 of the Value Added Tax Act (MWStG)).

In the agricultural sector, instead of an invoice issued by the primary producer, the buyer of the primary products often issues a credit note for the seller. Please refer to the provisions of Art. 27 para. 2 MWStG.

We also recommend that you discuss these kinds of business transactions with your trustee and make use of your trustee’s support.

Display options in bexio

First option: Manual postings

  1. Enter a new VAT rate for primary production under “Settings” - “All settings” - “Accounting” - “VAT Tax rates.” Define a unique code, for example, “Primeprod” and use “Input tax” as the tax type.
  2. Enter a manual posting under “Expense” / “Supplier” and select the VAT code entered in the first step. Enter 100% of the invoice amount. For a correct posting, add 2.5% VAT. This will result in an invoice amount of 102.5%. This 2.5% must be corrected again in step three.
  3. Make a post to correct the excess invoice amount posted in step two by making a second manual posting under “Supplier” / “expense,” but this time, do not enter a VAT code or a VAT rate. This is the VAT amount posted in step two.

Here is an example with an invoice amount:

  • Invoice amount from the primary producer: CHF 600.00, without VAT (tax-exempt activity).
  • You may deduct 2.5% of the (100%) invoice amount as input tax. This will create the corresponding VAT rate.
  • The first manual posting will result in the amount: CHF 615.00
  • The second manual posting will then only contain: CHF 15.00

The disadvantage of this solution is that you will not find this posting via the supplier OI (open items) list.

Second option: Supplier invoice

  1. Enter a new VAT rate for primary production under “Settings” - “All settings” - “Accounting” - “VAT Tax rates.” Give this a unique code and use “Input tax” as the tax type.
  2. Enter a supplier invoice (under “Purchasing” - “Supplier invoice”) and enter the first item with the VAT rate you created in the first step. Here, you use the amount of the invoice that you received.
  3. In the supplier invoice, enter a second item as a debit item, which corresponds to the VAT amount, and choose a VAT rate of 0% (e.g., VSF). If this is not available, check under “Settings” - “All settings” - “Accounting” - “Tax rates” to see if this VAT rate has been created and is visible.
  4. In the invoice, above the items in the “Settings” tab, switch to “Net” and save this change.
  5. Then process the supplier invoice as usual.

Here is an example with an invoice amount:

  • Invoice amount from the primary producer: CHF 600.00, without VAT (tax-exempt activity).
  • You may deduct 2.5% of the (100%) invoice amount as input tax. This will create the corresponding VAT rate.
  • Enter the VAT code and the amount CHF 600.00 for the first item.
  • Enter a debit item with a VAT rate of 0% for the second item, for example, enter “VSF” as the VAT code and CHF -15.00.

The advantage of this solution is that you can reconcile via the supplier OI list.

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