VAT, effective method

Effective method

VAT Act Art. 36: the tax due is the difference between domestic tax, acquisition tax and declared import tax on one side, and the input-tax credit on the other.

The software splits a document into net and VAT only for this method. The code and the rate come from the rules, not from a model.

Net tax rate

VAT Act Art. 37: the tax is the total taxable consideration, including tax, multiplied by the net tax rate authorised by the FTA. Art. 37 para. 1 states the turnover and tax limits.

The net tax rate is not a finished calculation. The software does not apply an authorised rate and does not say which method to choose.

Rates

Since 1 January 2024, VAT Act Art. 25 sets the standard rate at 8.1% and the reduced rate at 2.6%. Art. 25 para. 4 sets 3.8% for accommodation and states an end date there.

For the effective method, the software books these rates from its table. You check the rate before you confirm.

Filing

You file the return with the FTA yourself. The software files nothing. If you are not VAT-registered, bookings have no VAT codes.

Sources

• VAT Act Art. 25
• VAT Act Art. 36
• VAT Act Art. 37