How do I define VAT rates ?

Switzerland, as in many other countries, has defined several VAT rates depending on the nature of the items sold: basic necessities, ordinary items, exports abroad, etc. The different VAT rates must be entered in the VAT rates file, accessible via the Data menu.

It may happen that VAT rates change due to political decisions. In such a case, it is imperative to create a new VAT rate file and not to modify an existing VAT rate file.

To create a new VAT rate record, call the Action>New command or click on the New button.

A VAT rate record contains the following fields:

• Code: mandatory field. Maximum 3 characters. Each rate is defined by a code which can then be specified in the Accounts and/or entered in the entry lines for which you want an automatic calculation of the VAT.
• Title: This label can be freely defined and is not mandatory.
• Rate: VAT rate in %.
• Included: If this box is ticked, the program considers that the VAT is included in the amount of the entry line being entered.
• Proportion: proportion in percent of VAT recoverable on purchases.
• Account: indicate here the number of the account to which the VAT amount will be posted. In principle this will be an asset account (VAT to be recovered) for purchases, or a liability account (VAT creditor) for sales.
• Check boxes for special cases

For certain operations, you may have to define particular VAT codes in order to allow the automatic printing of the VAT statement.

These VAT codes will be assigned to the entry rows whose VAT amounts will have to appear, on the VAT statement, in the different positions whose figure is displayed next to the checkbox. The meaning of these figures is explained in the reference manual that you can open from the program via the Help>Consult the manual command.

Note: the Office Maker Business software also manages the VAT rates. If you use both programs to export entries from OM Business to OM Finance, we recommend that you use the same codes for the same rates in both programs. The easiest way to do this is to define the VAT rates in one program and then export them to the other using the "Standard" export-import format.