📍 Where can I find this module?
Main menu > Finance > Accounting
In order to create a VAT return, several settings are required to define :
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The method of collecting VAT (cash basis or accrual basis) – The various VAT accounts to be used depending on the applicable rates
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The VAT collection method
First, you need to configure the VAT collection method. The options are available under the following path: Finance > Accounting > Settings > VAT on Receipts.
The default collection mode is VAT on debits. Use the checkbox to switch to VAT on receipts. You will also need to set up transitory accounts to enable automated calculations to run smoothly.
**Tip**: You can change your VAT collection method at any time; however, to simplify your interactions with the tax authorities, we recommend that you only make this change at the beginning of the fiscal year.
Good to know:
VAT on receipts: VAT is payable on the day of payment for the service (receipt). This method is often used for the provision of services.
** VAT on sales:** VAT is due on the date the invoice is issued. This method is primarily used in the delivery of goods
- The different VAT accounts
Generally speaking, in accounting, it is preferable to use several output VAT accounts when the company makes sales subject to several different VAT rates.
In KAFINEA, this method is applied to both output and input VAT, for greater simplicity when generating the VAT return.
Configuration is performed using strategies—a feature unique to KAFINEA—via the following path: Finance > Accounting > Settings > Account Number Assignment Strategy for Products and Services.
To define output tax accounts, follow the steps below:
- Select: ***Sales Tax Accounts***- Enter a descriptive name, such as "Collected VAT 20%" - Select the tax corresponding to the rate: in our example, 20% - Select the context: in our example, sales - Select the account number: in our example, a subaccount of the collected VAT account 44571, such as 445712
The same steps are to be repeated for deductible VAT accounts:
- Select: Accounts for purchase taxes–– Enter a descriptive name, such as Input Tax 20% – Select the tax corresponding to the rate: in our example, 20% – Select the context: in our example, purchases – Select the account number: in our example, a subaccount of the input tax account 44566, such as 445662
All these steps must be repeated as many times as there are VAT rates used for your activity, in each sales or purchasing context.
**Important**: The VAT strategies you just created will be used in the product strategies for the VAT option: Any rate.