Changes due to the new 2024 rates
New codes have been added to the VAT Codes table for the new VAT rates for 2024 (8.1, 2.6, 3.8).
In particular, new codes have been added for the calculation of the tax on the VAT form, Section II, for transactions subject to VAT from 01.01.2024; the VAT codes relating to the old rates and valid for transactions subject to VAT up to 31.12.2023 remain unchanged.
For the newly added VAT Codes, the new references for the figures that must appear on the VAT form as of 01.01.2024 have been inserted. The figure references for the previous VAT Codes valid until 31.12.2023 remain unchanged.
For more information, please consult the detailed description of the VAT codes on this page.
If you have updated the VAT Codes table, the table is set as follows:
- V = Sales (200)
- VS = Discount sales and services (235)
- B = Acquisition tax (383 - 382)
- M = Expenses for material and services (400)
- I = Investments and other operating expenses (405)
- K= Corrections (410, 415, 420)
- Z = Not considered (910)
The GR1 column (visible in the Complete view) shows the figures of the VAT form, where the amounts are grouped according to the relevant VAT code.
For the programme, these indications are essential for the preparation of the VAT form (facsimile) and the Xml file for the electronic submission of VAT data on the portal of the Federal Administration.
There are VAT codes that must appear in several boxes for the figures on the form. For example, the sales taxable amount must appear in digit 200 (Turnover figure) and also in digit 303 (Tax calculation). In these cases, the figures separated by a semicolon (200;303) are entered in column Gr1.
If a VAT code, which is present in the table VAT Codes, is used in the table Recording and does not have a grouping in the column GR1, when printing the VAT form, the programme will report an error. If a VAT code is not to appear in any figure on the VAT form, 'xxx' must be indicated in column Gr1; thus no error is reported.
Gr1 codes till end of 2023 and from 2024
In the VAT form with the Effective method, in the Calculation of tax part, there are boxes up to 31.12.2023 (302, 312, 342, 382) and boxes from 1.1.2024 (303, 313, 343, 383).
In the VAT Form for Flat Tax Rate method, there are boxes up to 31.12.2023 (321, 331, 381) and boxes from 1.1.2024 (322, 332, 382) in the Calculation of tax part.
The Print VAT Form command inserts the values of the boxes according to the figure contained in Gr1. If a new code is added, the VAT form reference figure must therefore be entered correctly.
Turnover / Taxable Amount
Initial letter V is used for codes relating to Turnover.
Reference 200 - Total amount of agreed or collected consideration
All transactions related to turnover, whether subject or not to VAT, must be reported here. Exempt sales are to be indicated with the appropriate VAT code.
Codes for exempt transactions or supplies provided abroad must be grouped in reference 200 and simultaneously reported in the relative deduction reference number.
The VAT codes related to turnover are:
- V81, V26-N, V38 (valid from 01.01.2024)
- V77, V25, V37 (valid until 31.12.2023).
Sales subject to VAT must be grouped not only in the figure 200 but also in the respective positions according to the rate (302, 303, 312, 342, 343, 382, 383).
Reference 205 - Consideration exempt from tax where option for taxation has been exercised
These transactions must be indicated under reference number 200, but must also figure under reference no 205.
They carry a VAT code that is identical to a VAT sales code, with the additional indication in the Gr1 column that they also must be grouped in the ref 205.
In order to be able to use this position, VAT codes must be replicated from reference number 200. For simplicity, the letter B has been added to the existing VAT codes.
The following codes must be used in the VAT codes tab:
- V77 (valid until 31.12.2023)
- V81 (valid from 01.01.2024).
Reference 299 - Taxable turnover
The taxable turnover is constituted by the turnover minus the non-taxable turnover (Deductions) (221, 225, 230, 235, 280).
Decrease in Turnover
For each non-taxable or non-VATable position, there is a VAT code with a percentage of 0 (due).
Reference 220 - Tax-exempt services
Use the following code:
Reference 221 - Services provided abroad
Purchase of goods and services abroad are intended (Article 23) or when the beneficiary is not subject to tax(Article 107).
Use the following code:
Reference 235 - Reduction of consideration
These are discounts, rebates and losses that have led to a drop in business volume.
The VAT codes are:
- VS81, VS26-N, VS38 (valid from 01.01.2024)
- VS77, VS25-N, VS37 (valid until 31.12.2023).
Acquisition tax (Art. 45)
Reference 381 - 382 - Acquisition tax
Services that are obtained abroad, that do not carry any customs documents, must be subject to VAT as if they were sales.
For these cases, special VAT codes are needed to calculate VAT both as VAT due and as recoverable VAT.
The VAT codes to be used are:
- B81 for transactions with VAT code type 0 (VAT amount included), valid from 01.01.2024
- B81-1 for transactions with VAT code type 1 (VAT amount excluded), valid from 01.01.2024
- B81-2 for transactions with VAT code type amount 2 (VAT amount 100%), valid from 01.01.2024
- B77 for transactions with VAT code type 0 (VAT amount included), valid until 01.01.2023
- B77-1 for transactions with VAT code type 1 (VAT amount excluded), valid until 01.01.2023
- B77-2 for transactions with VAT code type amount 2 (VAT amount 100%), valid until 01.01.2023.
Recoverable VAT is reported in this part of the (refundable VAT).
Reference 400 - Input tax on Purchase of material and services
These are purchases of goods and services that are part of the company's core business.
The codes for recoverable taxation are:
- M81, M26, M38 (valid from 01.01.2024)
- M77 (valid until 31.12.2023)
In cases where VAT has been paid at customs and there exists an invoice with the VAT amount only, VAT code type 2 (Registration Amount = VAT amount) must be used. For these cases, the following code was set up:
- M81-2 (valid from 01.01.2024)
- M77-2 (valid until 31.12.2023).
For Amount type 1 (Amount of registration = Net Amount) use the following code:
- M81-1 (valid from 01.01.2024)
- M77-1 (valid until 31.12.2023)
Reference 405 - Input tax on Investment and operating costs
These are purchases for investments and operating costs that are not part of the 400 figure.
The VAT codes are:
- I81, I26, I38 (valid from 01.01.2024)
- I81-2 to be used for obtaining services abroad, in conjunction with the codes designated for calculating the purchase tax (see page VAT on foreign services)
- I77, I37 (valid until 31.12.2023).
It might be necessary to add further codes of Amount type 2, or Amount type 1 with different rates.
Purchases without VAT should not be included in the VAT return.
In some cases (eg clarity of the review) it may be useful to identify specific transactions without VAT.
The VAT codes are:
- M0 and I0, grouped with "xxx" in order to avoid generating an error message.
Corrections and reductions (recoverable tax)
It might not be necessary for the taxpayer to use these positions. If needed, use one of the codes grouped in the Correction and adjustments Group.
From an accounting point of view, correction transactions may essentially result in a reduction of VAT deductibility.
A registration must therefore be made for the deductible VAT adjustment (as a plus or minus).
Reference 410 - De-taxation (art. 32)
You can deduct the recoverable VAT paid in previous years.
The codes are:
- K81-A (valid from 01.01.2024)
- K77-A (valid until 31.12.2023).
Reference 415 Corrections of the input tax deduction, mixed use
In cases where merchandise has not been used for corporate or taxable purposes, it is not possible to recover all previous input tax VAT.
You can do this by always using the same purchase account (both credit and debit); in this way the purchase account will be increased by the amount of non-deductible VAT.
The codes are :
- K81-B (valid from 01.01.2024)
- K77-B (valid until 31.12.2023).
Reference 420 - Reduction of the input tax deduction
These are the transactions to be deducted from deductible VAT, such as subsidies.
This position must contain the same elements as the ones in reference 900.
The codes are:
- K81-D (valid from 01.01.2024)
- K77-D (valid until 31.12.2023).
Other cash flows of financial resources
In this part, the amounts relating to the base for the calculation for VAT must be reported..
These are transactions that are not part of the turnover and are not countervailing duties.
Reference 900 - Subsidies, tourist taxes and similar
Operations in reduction the deductible VAT, such as subsidies.
The code to use in these cases is:
Reference 910 - Donations, dividends, compensation for damages etc.
Out of scope transactions. Donations, dividends and all other "receipts" that do not lead to a reduction of deductible VAT.
The code to use in these cases is:
VAT Codes - Flat tax rate
As a result of the new VAT rates for 2024, in Banana Accounting, the VAT rates have also been updated using the flat tax rate method.
Column GR1 shows the figures of the VAT form where the amounts are totalled. If the amounts are to be totalled in several digits, these are separated by a semicolon.
- F1 - code provided for sales subject to 1st rate (reference 200, 323), to be used from 01.01.2024
- F2 - code provided for sales subject to 2nd rate (reference 200, 333), to be used from 01.01.2024
- FS1 - code provided for discount on sales subject to 1. rate (reference 235, 323), to be used from 01.01.2024
- FS2 - code provided for discount on sales with 2. rate (reference 235, 333), to be used from 01.01.2024
- F3 code provided for sales subject to 1. rate (reference 200, 322), to be used until 31.12.2023
- F4 code provided for sales subject to 2nd rate (reference 200, 332), to be used until 31.12.2023
- FS3 code provided for discount on sales subject to 1st rate (reference 235, 322), to be used until 31.12.2023
- FS4 code provided for the discount on sales subject to the 2nd rate (reference 235, 332), to be used until 31.12.2023
- F1050 - code provided for exports which have been annotated and declared using form 1050 (reference 470)
- F1055 - code provided for exports which have been recorded and declared by means of form No. 1055 (reference 471).
Those who run previous versions, can download the updated file of the new VAT Codes table, or enter the missing codes.
VAT account in the basic accounting data
All default Banana Accounting templates have the VAT account (2201) already set up in the File properties (File menu, VAT section). This allows the VAT calculations to be automated, so that all VAT amounts are accounted for in this account.
At the end of the quarter, the balance of this account represents the amount to be paid to the FTA (or to be recovered).
When the VAT Return account (2201) is set in the file properties, in the VAT Codes table, the VAT Account column must be empty.
If account 2201 is not set in the file properties, the previous VAT account 1, 2 and the VAT account due to each individual code can be set. In this case, the VAT is spread over three different accounts and at the end of the quarter the VAT accounts must be closed in order to determine the VAT payable to the FTA.