Balance/Flat

In AbaNinja, you can create new billing periods under the VAT settings and select the balance or flat rate method as the billing method. This method is intended for companies that have been granted permission by the Federal Tax Administration (ESTV) to settle their VAT with a flat or balance tax rate. The VAT is not calculated on each individual sale, but rather applied as a flat rate based on an agreed-upon rate on the total sales.

Benefits:
The balance or flat rate method simplifies VAT billing for certain companies, as the tax does not have to be calculated in detail on individual sales. This is particularly advantageous for small businesses or businesses with special industry regulations that have been granted permission by the ESTV. In AbaNinja, you can enter the flat tax rate and the VAT billing will be adjusted accordingly.

The calculation of the tax is based on the formula:
Gross inclusive: transaction amount - (transaction amount * flat tax rate / 100)
Net exclusive: (transaction amount * (VAT rate + 100) / 100) - ((transaction amount * (VAT rate + 100) / 100) * flat tax rate / 100)

How to add a VAT period with the balance or flat rate method

1. Navigate to Settings > VAT.
2. Click on Add period.
3. Set the desired period (start and end date).
4. Check the box for balance or flat rate tax.
5. Select the stored flat tax rate.
6. Save the settings.

Notes and tips

• The balance or flat rate method is only available if you have been granted permission by the ESTV to apply this method.
• In the settings under VAT > Rates, you can enter and activate the flat tax rate.
• Once the balance or flat rate method is activated, the VAT billing form will change accordingly, and the calculation will be based on the stored flat tax rate.
• The billing method is definitive once the first transaction is created in the fiscal year. A change is only possible to the next quarter if there are no transactions in this quarter.
• Additional paid features are required in AbaNinja for the balance or flat rate method (Advanced Subscription).
• Make sure you have activated the correct accounts for the flat tax in your chart of accounts to ensure correct accounting.
• The balance or flat rate method is specifically taken into account in the VAT control list and the annual financial statements.