Buying and selling without VAT calculation

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There may be purchases and sales where the goods are not subject to VAT, or where the goods are VAT-included and no VAT needs to be calculated, e.g. freight, because it is simply a re-invoicing of the service from the carrier. It is possible to invoice both taxable and non-taxable goods on the same invoice. The following describes how to set up Uniconta to handle goods that do not require VAT to be calculated. Prerequisite for invoicing goods and services without VAT calculation:
  1. A 0% rate VAT code, one for both input and output VAT, if you need to be able to both buy and sell the item without VAT.
  2. A product group where you point to the VAT code with the 0% rate and do other setup regarding sales and purchase accounts etc.
  3. Item numbers associated with the product group(s) above.
  4. On debtor and creditor groups, the Revenue coding field must be filled in with 'Product group'.
  5. The financial accounts selected as sales and purchase accounts on the product group must be filled in with the value 'Optional' in the Forced VAT field in the chart of accounts.
Below is a description of how to set up these points

(1) VAT codes

VAT code for VAT-free sales DK Below is how to create a VAT code for VAT-free sales in DK.
  • Select Economy/Maintenance/VAT
  • Select the Add button if you don't already have a VAT code with 0% in Rate and with VAT operation, Sales = 'S2'
  • For example, fill in the fields as shown below. Remember that Rate must be 0, and VAT operation, Sales = 'S2'.
VAT code for VAT-free purchase DK Below is how to create a VAT code for VAT-free purchase in DK.
  • Select Economy/Maintenance/VAT
  • Select the Add button if you don't already have a VAT code with 0% in Rate and with VAT operation, purchase = 'k1'
  • For example, fill in the fields as shown below. Remember that Rate must be 0, and VAT operation, purchase = 'k1'.

(2) Product groups

Below is how to create and/or edit an item group to be used for VAT-exempt items.
  • Select Lager/Maintenance/Commodity groups
  • Select the Add button if you don't already have a product group for VAT-free goods, or select the Edit button to edit the existing product group.
  • Fill in the Sales VAT (Domestic) and Purchase VAT (Domestic) fields with the VAT codes with the 0% rates. Make sure to fill in other fields on the product groups in the same way as your other product groups, i.e. with inventory accounts, loss/profit etc.
  • If you have sales and purchases abroad of goods from this product group, then you need to fill in the fields for VAT on purchases and sales to EU member states, Abroad etc. with VAT codes for EU and Abroad instead of the VAT codes UM and IUM.
  • Also check the VAT selection and account setup on your other product groups, because when you select the account setup to be retrieved from product groups in When you choose in step 5 that the account setup should be retrieved from product groups, it is important that the setup is also correct for the other product groups.

(3) Goods

Below is how to create and/or edit VAT-exempt items to be linked to the above-mentioned item group.
  • Select Lager/Goods
  • Select the Add item/Add item button to create a new item number if you have not already created the item number. Alternatively, select the Edit button to open the item card on the existing item number.
  • Fill in/edit the Group field so that it is filled in with the product group for the VAT-free products.

(4) Debtor/creditor groups

Below is how to edit the setup on the debtor and creditor groups so that the VAT and account setup from the product groups is used instead of the setup on the debtor/creditor groups.
  • Select Debtor/Maintenance/Debtor groups and Creditor/Maintenance/Creditor groups
  • Check that the Revenue coding field is filled in with the value 'Product groups'. Note! The above must be done on all debtor and creditor groups.

(5) Financial accounts

Below is how to change the setup of the financial account where you post the VAT-free sales to allow you to post with VAT code on the account. You only need to change this if you have previously specified that VAT codes should not be entered in the accounts.
  • Select Finance / Chart of accounts
  • Find your revenue account and select the Edit button to check that the Mandatory VAT field is filled with the value 'Optional'
  • You also need to do this on your purchase accounts/inventory accounts if you also have VAT-free purchases.