How are tax rates (VAT) added?
When you open your AbaNinja account, the officially valid VAT rates for your country are automatically set up. These tax rates are automatically checked once a year and replaced and activated if they change. This ensures that your invoices and bookings always have the correct VAT rate, which supports correct VAT billing and makes it easier to comply with legal requirements. By automatically updating the official tax rates, you are always up to date, and by being able to record your own tax rates, you can also cover special cases.
Benefits:
Managing tax rates ensures that your invoices and bookings always have the correct VAT rate, which supports correct VAT billing and makes it easier to comply with legal requirements. By automatically updating the official tax rates, you are always up to date, and by being able to record your own tax rates, you can also cover special cases.
If you need a tax rate that is not in the list, you can add a new tax rate manually or edit existing ones at any time under Settings > VAT > Tax rates.
In the overview table, you can see all recorded tax rates, including current and historical values with the respective validity periods.
The table contains the following columns:
- Rate: Percentage value, e.g. 8.1%
- Name: e.g. VAT, 8.1 reference tax, lump sum
- Type: Normal, balance/lump sum tax rate, reference tax
- Valid from / Valid until: Period in which the tax rate is valid
When creating or editing a tax rate, the following fields must be filled in:
- Name (mandatory field): e.g. VAT
- Rate (%): e.g. 8.1
- Type (mandatory field): Selection between "Normal", "Balance/lump sum tax rate" or "Reference tax rate"
- Valid from: Date or year from which the tax rate applies
- Valid until: Optional end date
- "Inactive" option: To deactivate a tax rate
Types of tax rates
Normal: The standard VAT rate that applies to most sales.
Balance/lump sum tax rate: For companies that use the simplified billing method (lump sum or balance billing).
Reference tax rate: For reference tax cases, e.g. services from abroad (supplier invoices).
Tips and hints:
Automatic updates: The official tax rates are automatically checked and adjusted once a year. Manual changes to these rates are usually not necessary.Your own tax rates: Use the function to add, for example, lump sum tax rates or foreign tax rates if your business requires it.
Validity periods: Make sure to define the validity periods correctly so that AbaNinja automatically uses the correct tax rate depending on the invoice date.
Set to inactive: If a tax rate is no longer to be used, you can deactivate it instead of deleting it to retain the history.
Use in products: Assign the correct tax rate when recording products or services so that it is automatically applied to invoices.
Consider the billing method: The selection of the tax rate should match the VAT billing method you have chosen (normal, lump sum, balance).
No VAT liability: If your company is no longer liable for VAT, you can enter this in the settings to disable VAT calculation.