Tax-free

In AbaNinja, you can add a new VAT period under the VAT settings and select the tax-free option. This setting is relevant if your business is not VAT-liable because it falls below the legal thresholds or for other reasons is exempt from VAT. In this case, no VAT bookings or invoices are made, and your sales are recorded without VAT.

Benefits:
The tax-free setting simplifies accounting for businesses that are not VAT-liable. You do not have to create VAT invoices or show VAT on invoices. This avoids unnecessary administrative work and ensures that your accounting complies with legal requirements.

How to add a VAT period with the tax-free setting

1. Navigate to Settings > VAT.
2. Click on Add period.
3. Define the period (start and end date).
4. Select the "No VAT liability" option.
5. Save the settings.

Notes and tips

• The tax-free setting should only be applied if your business is actually not VAT-liable. Check this against legal requirements or in consultation with your trustee.
• Once the first booking has been made in the financial year, the billing method is definitive. A change is only possible to the next quarter if there are no bookings in this quarter.
• With the tax-free setting, no VAT accounts are used, and no VAT invoices are issued.
• Make sure that no VAT is shown when creating invoices to avoid misunderstandings with customers or the tax authorities.
• If your VAT liability changes, you can adjust the billing method in AbaNinja accordingly, provided the conditions for a change are met.