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How can I change my VAT method during the course of a fiscal year?

Contents

bexio has a feature that allows you to change your chosen VAT method retrospectively. You can choose either effective taxation or balance control taxation.

Reasons for changing the VAT method

  • The method changes at the beginning of the new calendar year (e.g. 2019)
  • The previously chosen method is incorrect and must be changed

Why can’t I change my VAT accounting method?

There are several possible reasons. You can find a detailed explanation here: Why can't I change my VAT method?

What do I need to take into consideration?

Changing the VAT method is a complex process and requires good knowledge of VAT accounting. We recommend that you consult your accountant in this regard.

How do I perform the change?

Changing from effective taxation to balance control taxation

As soon as the criteria from the aforementioned article have been met, you will be able to perform the change. To do this, open your VAT settings under "Settings" -> "All settings" -> "Base VAT settings" and then click on "Change to balance control taxation".

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A window will open in which you can define the required balance control tax rates (SSS1 and SSS2, if required).

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Once you have entered the balance control tax rates, you can assign them to a VAT rate. On the left-hand side, you will see the VAT rates that you have used, and these can be assigned to a balance control tax rate on the right-hand side.

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In the next step, you will see supplier invoices for which a customs tax rate has been defined. Since customs tax rates are not permitted in the balance control method, they must be removed. Normal input tax rates are also not permitted in the balance control method. 

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After changing the VAT method, you will see which documents still have to be adjusted in the list view of supplier invoices, which can be found under "Purchases" -> "Supplier invoices". Such documents have a different background colour.

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In the final step, you will be presented with a summary, which you need to confirm to execute the process. If you click on "Cancel", no changes will be made.

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The process may take a few minutes, depending on the amount of data.

N.B.: You cannot use your bexio account during the conversion process. We therefore recommend that you perform the conversion during off-peak hours if possible.

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Changing from balance control taxation to effective taxation

As soon as the criteria from the aforementioned article have been met, you will be able to perform the change. To do this, open the VAT settings under "Settings" -> "All settings" -> "VAT basic settings" and then click on "Change to effective taxation".

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A window will open in which you can select the desired VAT rate for your balance control tax rates. You will see the balance tax rates that you use on the left and the VAT rates on the right.

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In the next step, you will see supplier invoices and expenses for which no VAT rate has been defined. With the balance control tax method, documents must be recorded without VAT because you are not entitled to deduct input tax.

With the effective tax method, a VAT rate must always be recorded in the documents. You will therefore have to modify the documents after changing the VAT method.

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After changing the VAT method, you will see which documents still need to be modified in the list views of supplier invoices and expenses that can be found under "Purchasing" -> "Supplier invoices" and "Expenses". Such documents have a different background colour.

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In the final step, you will be presented with a summary, which you need to confirm to execute the process. If you click on "Cancel", no changes will be made.

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The process may take a few minutes, depending on the amount of data.

N.B.: You cannot use your bexio account during the conversion process. We therefore recommend that you perform the conversion during off-peak hours if possible.

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Change logs

After your VAT method has been successfully changed, you will be forwarded to a so-called change log, in which you can see which changes were made. If you would like to view the log later, you will find it under "Reports" -> "Logs".

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