All services obtained abroad must be included in the Swiss VAT report. Unlike the import of goods that are being cleared at customs, for services obtained abroad there are no customs papers, but the VAT for this type of operation must be calculated and paid anyway.
Codes to be used
In the VAT codes table, there are specific codes to be used for services obtained abroad: codes B80-1 and M80-1.
They are two codes with Amount type 1, where the VAT is calculated on the Net amount (without VAT).
- the B80-1 code calculates a VAT debit amount
It is important that the column Don't Warn is activated (Yes), otherwise you get an error message.
- the M80-1 code calculates a VAT credit amount
How to enter the transactions
The transaction must be entered on two rows.
On the first row:
- enter the account for the service obtained abroad (as Debit), a liquid assets account or a supplier account (as Credit), the invoice amount (as amount) and the B80-1 VAT code (as VAT code)
On the second row:
- enter the account for the service obtained abroad (both in Debit and Credit columns), the same amount as the previous row (as amount) and the M80-1 VAT code for the VAT recovery
VAT on services obtained in a foreign currency
If when using a foreign currency in combination with VAT codes, the program notifies some warning messages, you can use an internal transfers account in the basic currency:
- enter the service purchase from abroad without entering any VAT code.
- for the next transaction (self-imposing VAT + VAT recovery for services abroad), use the internal transfers account (for both Debit and Credit columns), the amount in basic currency obtained from the previous transaction (as amount), and the B80-1 and M80-1 VAT codes (as VAT codes). The B80-1 code is to be used for the VAT self-imposing, and the M80-1 VAT code is to be used for the VAT recovery.
- for your reference, if you wish so, you can indicate the amount in the original foreign currency in the transaction description
- at the end of the operation the internal transfers account balance should be zero.
VAT on services obtained abroad with the Swiss flat tax rate VAT method
When adopting the Swiss flat tax rate VAT method, you only need to register the purchase vith the B80-1 VAT code for the self-imposition.
You don't need to enter the VAT recovery transaction, as this method doesn't allow any deduction on purchases, including those occurred abroad.