Modified VAT

🔍 Example

👉 Applies to: administrators in organizations where the full VAT is not always deductible.

⚙️ Step 1 – Activate modified VAT

1. Go to Accounting > VAT settings.
2. In the drop-down Use modified VAT on dimension, select Internal account.
3. Click Save.

📊 Step 2 – Create options for modified VAT

1. Go to Accounting > Accounts and select the Modified VAT tab.
2. Add the options you need, for example 0%, 50% and 100%.
3. Enter the account where the remaining VAT should be accounted for.

⚠️ Do not forget to add an option where the full VAT is deducted as usual.

🏢 Step 3 – Link a VAT rate to a cost center

1. Go to Administrate > Internal accounts and select Cost center.
2. Go to the Account codes tab.
3. Select the cost center.
4. Choose one of the options you added in step 2.
5. Click Save.

✅ When a user does the accounting on the cost center, the VAT is deducted according to the setting.

💡 Test with a sample expense before you start using the setting for real.

❓ Frequently asked questions (FAQ)

When should we use modified VAT?
When the full VAT is not deductible for part of the business.

Can the VAT be controlled per cost center?
Yes, through the Account codes tab on the internal account.

What happens to the VAT that is not deducted?
It is accounted for on the account you entered for remaining VAT.

✅ Summary

• ⚙️ Activate under Accounting > VAT settings
• 📊 Create options under Accounting > Accounts > the Modified VAT tab
• 🏢 Link the options to cost centers under Administrate > Internal accounts > Account codes

🔗 Related articles

• • VAT exempt – turn off VAT handling
  • VAT codes in the export file
  • Internal account bindings