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What VAT support in Valutra is for
Valutra can help you plan VAT payments and understand the liquidity impact.
It is not a tax filing tool.
Availability (countries)
VAT planning is currently Germany-only (DE).
If your selected country does not support VAT (e.g. OTHER):
- VAT UI is hidden.
- VAT is automatically disabled.
Country works like a user-level default (similar to default currency): changing it does not retroactively rewrite existing data and does not convert amounts.
Key idea
- Valutra can create VAT-related plan items so that your forecast includes expected VAT outflows.
Prerequisites & settings (User settings)
VAT features depend on your configuration in User settings.
Key options:
- Show sales tax separately: enables VAT logic and VAT-specific UI.
- Accounting method:
- Accrual basis: VAT is assigned based on invoice/service timing.
- Cash basis: VAT is assigned based on payment date.
- VAT reporting frequency: monthly / quarterly / yearly (defines the periods used for calculation).
- VAT payment day (1–31): due day in the following month (end-of-month is handled as “ultimo”).
- Default / reduced tax rate (%): presets for per-amount VAT selection.
- VAT category: category used for auto-generated VAT advance payment plan items.
VAT per amount (business)
For business amounts you can (when VAT is enabled) select VAT handling per amount:
- no tax
- default or reduced (based on your user settings)
Depending on the context, the UI shows a breakdown (e.g. net/tax or gross/tax) so it’s clear what portion is VAT.
Automatic VAT advance payments (planned VAT payments)
If “Auto-generate VAT advance payments” is enabled, Valutra creates/updates planned VAT advance payments automatically.
Important details:
- Planned VAT payments are generated per reporting period (monthly/quarterly/yearly).
- Periods that are already paid (planned VAT payments that have a linked payment) are not overwritten.
- The forecast horizon is the later of:
- current period + 5 years
- the furthest VAT-relevant business date (e.g. last contract end / last planned instance)
This keeps VAT forecasting stable even with contract gaps.
What happens when VAT is disabled
When VAT gets disabled (explicitly or because you switch to a country where VAT is not supported):
- Unpaid VAT plan items (VAT payments without linked payments) are removed.
- Paid/historical VAT plan items (with linked payments) remain unchanged.
VAT modal
The VAT modal shows a VAT summary for a selected period and explains how the amount is derived.
You typically open it from Payments & reconciliation for a month (and depending on context also for quarter/year).
The modal includes:
- A disclaimer: only transactions recorded in the system are included.
- Monthly/quarterly/yearly summaries with their date ranges.
- Optional “Forecast included” warning: planned business instances without matching payments are shown separately.
- Breakdown by tax rate:
- Income (net) + VAT
- Expenses (gross) + Input tax
- Balance (liability / refund) per rate
- Total totals for VAT/input tax and the resulting liability/refund.
- If automatic generation is disabled: a manual “Create VAT payment” action for the displayed period.
How VAT is calculated (short)
- Payments override planned instances (no double counting).
- Planned business instances without payments can be included as forecast.
- The accounting method (accrual/cash basis) primarily affects which period income/expenses are assigned to.
Truncation rule for German VAT returns
For German VAT advance returns in Valutra:
- The net tax base is truncated to full euros per period and per tax-rate group.
- VAT is then calculated from that truncated net base.
- Valutra does not truncate one single aggregated total across all tax rates.
How to interpret results:
- The sum of monthly/quarterly values can differ slightly from a separately calculated yearly view.
- Small differences are expected in period-based tax calculations.
Important warning
Always verify VAT results.
- Your accounting/tax tool is the source of truth.
- Valutra is planning support.
Troubleshooting
If the VAT numbers look surprising:
- check your VAT settings (frequency, method)
- check whether payments already exist (payments override planned instances)