What VAT methods and settings are available and what do they mean?

Various VAT options can be selected when opening an AbaNinja account or later via Settings < Accounting < VAT < VAT periods. Which VAT methods are available and what the individual settings mean is explained below.

When opening a new AbaNinja account, the following information is displayed and requested:

Value Added Tax

VAT no.

The VAT number is based on the company identification number (UID) and bears the suffix "MWST".
Example: CHE-123.456.789 VAT

Billing method

Effective taxation - Gross method (standard)

The gross method includes the tax amount, i.e. it is included in the amount. For invoice documents (A/R) and supplier documents (A/P), the calculation can be overridden by the definition Settlement of product prices under Settings > Products.

The calculation of the tax is based on the formula:
Entry amount / (100 + tax rate) * tax rate

Effective taxation - Net method (Advanced)

With the net method, the tax amount is exclusive, i.e. added to the entry amount. For invoice documents (A/R) and supplier documents (A/P), the calculation can be overridden by the definition Settlement of product prices under Settings > Products.
Manual entries are always entered inclusive.

The calculation of the tax is based on the formula:
Entry amount / (100) * tax rate

Balance-/Flat Tax Rate (Advanced)

With the balance/flat tax rate, a reduced tax rate is used. The tax rate is approved by the Federal Tax Administration FTA and depends on the industry.

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

Changes can also be made retroactively to an existing account via Settings < Accounting < VAT < VAT time period.

The AbaNinja supports only the agreed VAT method.