As of 1st of January 2018, changes to the reduction of VAT rates will enter into force, according to the federal vote of 24th of September 2017.
The Plan of Accounts available on our website do already integrate the new VAT codes, with the rates up to the end of 2017 and thereafter.
Details of the changes are available on the Federal Tax Administration's website.
- Set up the account to be used for the breakdown of VAT in the basic accounting data (File, File Properties, VAT).
- For those who already use a Banana file via the old VAT Code table, it is recommended to update it by following the instructions on the New 2018 VAT rates page.
VAT Codes - new rates for 2018
The new codes relative to the new rates are available in the VAT_Codes_2018 file , to download and install in Banana Accounting Software.
- V = Sales (200)
- VS = Discount sales and services (235)
- B = Acquisition tax (380)
- M = Expenses for material and services (400)
- I = Investments and other operating expenses (405)
- K= Corrections (410, 415, 420)
- Z = Not considered (910)
The reference numbers to be used for the reporting of the total amounts in the VAT form figure in the Gr1 column, when you are in "full view" mode.
Those are essential indications for the the software to prepare the facsimile version of the form.
Some VAT codes must appear in multiple boxes of the reference numbers. For example, the sales tax must be present in figure 200 (Turnover) and also in the figure 301 (Tax Calculation). In these cases, indicate the digits by using a semicolon separation (200; 301) in the Gr1 column.
If you use an VAT code, that does not have any reference number in the Gr1 column, the spreadsheet will result in an error message. If any VAT code should not appear in the VAT form, you should use "xxx" as a reference in the Gr1 column; thus, the CSS will not generate any error message.
Gr1 codes till end of 2017 and as of 2018
In the VAT Form for the Effective method, there are boxes valid till 31.12.2017 (301, 311, 341, 381) and others as of 1.1.2018 (302, 312, 342, 382).
In the VAT Form for Flat Tax Rate method, there are boxes valid till 31.12.2017 (321, 331.381) and others as of 1.1.2018 (322, 332, 382) in the calculation part of the tax.
The Print VAT Form command inserts the value of the boxes according to the figure contained in Gr1. If you add a new code, you must therefore enter the correct VAT reference code of the form.
The 2.5% rate remains unchanged, but in the VAT form, the amount of the transactions must be distinguished between transactions up to 31.12.2017 and those after on 01.01.2018.
For this reason, in addition to VAT code V25 for 2017, the V25-N was added for 2018.
The V25 is grouped in reference number 311 of the VAT form (column Gr1 of the VAT Codes table), while the V25-N is grouped in reference number 312.
The V25 code may continue to be used also in 2018, but in the Gr1 column the number 312 must then be indicated, instead of 311.
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:
- V77, V25, V37 (valid as per 01.01.2018)
- V80, V38 (valid till 31.12.2017).
In addition to reference 200, sales subject to VAT must also be grouped on the basis of the applicable rate (301, 302, 311, 312, 341).
In addition to reference 200, sales subject to VAT must be grouped in their respective positions, on the basis of their rate (301, 302, 311, 312, 341).
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-B (valid as from 01.01.2018)
- V80-B (valid until 31.12.2017).
Reference 299 - Taxable turnover
The taxable turnover is constituted by the turnover minus the non-taxable turnover (Deductions) (221, 225, 230, 235, 280).
Reference 220 - Supplies exempt from tax
Use the following code:
Reference 221 - Supplies 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:
- VS77, VS25, VS37 (valid from 01.01.2018)
- VS80, VS38 (valid until 31.12.2017).
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.
In these cases, appropriate VAT codes must be used and a double registration is required: firstly, the VAT code (VAT imposition) is grouped in reference number 200; secondly the VAT code (VAT recovery) to be grouped in reference number 381 is used (for operations until 31.12.2017) or 382 for operations as from 01.01.201
The VAT codes to use are:
- B77 for transactions with VAT code 0 (VAT amount inclusive)
- B77-1or transactions with VAT code 1 (VAT amount exclusive)
- B77-2 or transactions with VAT code 2 (VAT amount 100%).
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:
- M77, M25, M37 (valid from 01.01.2018, with exception for code M25 that remains unchanged)
- M80 (valid until 31.12.2017).
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:
- M77-2 (valid from 01.01.2018)
- M80-2 (valid until 31.12.2017).
For Amount type 1 (Amount of registration = Net Amount) use the following code:
- IVA M77-1 (valid from 01.01.2018)
- M80-1 (valid until 31.12.2017).
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:
- I77, I25, I37 (valid from 01.01.2018, with exception of code I25 that remains unchanged)
- Code I77-2 has been added, to be used for services obtained abroad, in conjunction with the codes for the calculation of the purchase tax (refer to page VAT on services obtained abroad).
- I80, I38 (valid from 31.12.2017).
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:
- K77-A (valid from 01.01.2018)
- K80-A (valid until 31.12.2017).
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 :
- K77-B (valid from 01.01.2018)
- K80-B (valid until 31.12.2017).
Reference 420 - Reduction of the input tax deduction
These are the transactions to be deducted from deductible VAT, such as subsidies.
These positions must contain the same elements as the ones in reference 900.
The codes are:
- K77-D (valid from 01.01.2018)
- K80-D (valid until 31.12.2017).
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 account in the basic accounting data
As per version 6 of Banana Accounting, the possibility of designating a general VAT account for registering VAT was introduced.
Go to the properties menu (VAT tab) and set the VAT account to use to register the VAT, which the program calculates automatically.
If the VAT account in the VAT code line is empty, the default one will be used.
You may, however, set the account at the level of each single VAT code and use multiple VAT accounts.
Amendments as a result of the new 2018 rates
The codes relative to the new tax rates have been added to the VAT Code tab (7.7, 3.7).
New codes have been added, in particular for the calculation for tax calculation in section II of the VAT Form, for transactions subject to VAT as per 01.01.2018; the VAT codes relating to the old rates remain unchanged and the rates are valid for transactions subject to VAT until 31.12.2017.
For the newly added VAT codes, new referring numbers have been entered relating to the references to be included in the VAT Form starting on 01.01.2018. The referring numbers figures for previously valid VAT codes remain unchanged until 31.12.2017.
Please refer to detailed description of various VAT codes on this same page.
VAT returns for the fourth quarter 2017 and 2018
Towards the end of 2017, a software update will be released that will allow you to print the facsimile of the VAT invoice with the new VAT rates.
Modifications versus the 2012 form
- VAT code M76 has been changed to M80
- VAT code IVA M76-2 has been replaced by M80-2.
- VAT codes were different for the following languages (I, F, D). Since 2010, identical codes have been used for different languages.
VAT quotes - Rates reporting
The procedure adopted for Banana Accounting 9 usesVAT codes which will automatically report the amounts into the facsimile of the Swiss VAT Form and the Effective rate method/Flat Rate method.
The GR1 column shows the reference numbers of the VAT where amounts are to be added up. If the amounts are to be multiplied, they are separated by a semicolon.
- F1 - code for sales subject to rate 1. (reference 200, 321), to be used till 31.12.2017
- F2 - code for sales subject to rate 2. (reference 200, 331,)to be used till 31.12.2017
- FS1 - code for discounts on sales subject to rate 1. (reference 235, 321), to be used till 31.12.2017
- FS2 - code for discounts on sales subject to rate 2. (reference 235, 331), to be used till 31.12.2017
- F3 - code for sales subject to rate 1. (reference 200, 322), to be used from 01.012.2018
- F4 - code for sales subject to rate 2. (reference 200, 332), to be used from 01.012.2018
- FS3 - code for sales subject to rate 1. (reference 235, 322), to be used from 01.012.2018
- FS4 - code for sales subject to rate 2. (reference 200, 332), to be used from 01.012.2018
- F1050 - code for exports that have been annotated and declared via form 1050 (reference 470)
- F1055 - code for exports that have been annotated and declared via form 1055 (reference 471).
Those who run previous versions, can download the updated file of the new VAT Codes table, or enter the missing codes.