In this article
Automatic resetting of the "VAT according to VAT report" account at the end of the quarter
At the end of the period, the balance of the "VAT according to VAT report" account needs to be put to zero and the amount will be charged to the VAT Due account (or to the Treasury VAT account).
This operation involves:
- Resetting of the balance of the "VAT according to VAT report" account.
- Transfer of the VAT balance to the VAT due account (or Treasury VAT account).
- If this results in a VAT debit, the VAT balance is posted in Credit of the VAT due account; in Debit of the "VAT according to VAT report" account, the balance is set to zero.
- If this results in a VAT credit, the VAT balance is posted in Debit of the VAT due account; in Credit of the "VAT according to VAT report" account, the balance is set to zero.
Account card "VAT according to VAT report" account after balance transfer
The balance of the "VAT according to VAT report" account is reset to zero after the transaction of the balance transfer on the VAT Due account.
Transaction for charging the quarter balance to the Due VAT account
VAT balance payment
When the VAT amount is paid to the FTA (Federal Tax Administration), the balance in the VAT Due account resets to zero.
For the transaction:
- Enter the date, document number, and description in the respective columns.
- In the Debit column, enter the VAT Due account.
- In the Credit column, enter the liquidity account.
- In the Amount column, enter the VAT Due amount paid.
With this system it is possible to have a check of the balance of each quarter and in case of error it is possible to identify in which period the balance is no longer corresponding.
VAT due account card after the payment
Note:
The VAT payment process we just explained refers to the Swiss effective VAT payment method and the Swiss flat rate payment method with VAT separation.
If you use the Swiss flat rate payment method without VAT separation, you can find specific information on the VAT payment and accounting assessment page.
How to register a VAT credit (Switzerland)
If at the end of a period, when calculating the VAT declaration, the previous VAT is bigger than the due VAT, your VAT report has a Debit balance.
To reset the "VAT according to VAT report" account to zero, you need to enter a transaction as follows:
- put in Debit A/C the VAT Due account
- put in Credit A/C the "VAT according to VAT report" account
Usually, in Switzerland the VAT credit is reimbursed to the company, without having to move the credit to the following period.
When your VAT is reimbursed, you need to enter a transaction as follows:
- put in Debit A/C your liquidity account
- put in Credit A/C your Due VAT account (where the balance should go to zero).