Tax setting modifications

The setting modifications described below correspond to the Recommended procedure.

Tax rates function (GESTVT)

Abrir: Common data > Common tables > Taxes > Tax rates

For each new tax rate, create a new tax code and its respective tax rate. The tax codes should be assigned to SWI (Swiss) legislation. If certain tax rates are not needed, (e.g., accommodation rate or reduced tax rate for customer invoices), they do not need to be created. We recommend using the indicated tax codes, but of course you can assign other IDs to the tax codes if necessary.

Tax code	Title	Tax rate %	Start date tax rate
SW201	Input Tax 7.7% Mat. & services	7.7%	10/01/2017
SW202	Input Tax 2.5% Mat. & services	2.5%	10/01/2017
SW205	Input Tax 7.7% Invest. & Other costs	7.7%	10/01/2017
SW206	Input Tax 2.5% Invest. & Other costs	2.5%	10/01/2017
SW207	Input Tax 3.7% Accommodation	3.7%	10/01/2017
SW220	VAT 7.7% (Normal)	7.7%	10/01/2017
SW221	VAT 2.5% (Reduced)	2.5%	10/01/2017
SW222	VAT 3.7% (Accommodation)	3.7%	10/01/2017

To quickly create the new tax codes, you can select the corresponding tax rate and duplicate it. You then simply need to replace the code existing tax with the new code (Tax field). You can change the assigned percentage rate and its start date later.

The start date should be set to 10/01/2017 if the new tax rates should be applied on entries from 2017 issued with the new tax rate.

VAT declaration parameter function (DCLVATSWI2)

Abrir: Declarations > Switzerland > Setup > VAT declaration parameter

In parameter administration, create new entries for the newly created tax codes and assign the report lines according to the new tax form.

Click New and enter the corresponding tax code in the Tax field or click the Selection icon to select an existing code. Then select the report line to be assigned to the Report line field in the report line table. If necessary, add additional lines to the table if a tax code must be part of several report lines. Save your changes.

When you follow the recommended procedure, the entering a validity period is not necessary.

Overview on Report line assignment for new tax rates

• VAT 7.7% (Normal): 200, 302
• VAT 2.5% (Reduced): 200, 312
• VAT 3.7% (Accommodation): 200, 342
• Input tax material/services (all tax rates): 400
• Input tax investments/operating expenditures (all tax rates): 405

Accounts function (GESGAC)

Abrir: Common data > G/L accounting tables > General > Accounts

In general, a standard tax code is set in the account structure for accounts that are subject to tax. This code is suggested in journal entry. As of 01/01/2018, these standard tax codes will be replaced by the new tax codes so that the new tax rates will be suggested.

Tax determination function (GESTVC)

Abrir: Common data > Common tables > Taxes > Tax determination

The rules defined in this function apply to the Sales and Purchasing modules. The combination of BP tax rule and Product tax level controls the tax code to be applied and thus the tax rate.

Therefore, the rules for tax determination need to be adapted with the new tax codes. To do this, you can proceed as follows:

1. Adjusting the existing rules on the effective date
   This procedure requires that in Sales and Purchasing old and new tax rates can be differentiated and that exemptions can be processed manually.
   On 01/01/2018, the current set tax code will be changed to the correspondent new tax code in the concerned tax rules.
   An alternative option involves creating renamed copies of the rules and assigning the new tax code to them. The new rule must first be set to inactive. On 01/01/2018, the former rules will be deactivated and the new rules activated.
2. Using a condition
   The relevant rules are copied and renamed, and the new tax code is entered in the duplicate version. In addition, a condition will be entered in the old and the new rules referencing the DAT field in the TAXLINK table and checking the following condition:
   Current tax rule:  DAT less than or equal to 12/31/2017
   New tax rule:  DAT greater than or equal to 10/01/2018
   Thus, the old or the new tax rule will be used for tax determination according to the invoice or the shipping date (depending on the context).

Depending on your business case, it might be useful to define another tax determination rule where you can manually use the old tax rate on invoicing, if necessary:

First create a new Tax level (GESTVI), such as "Old tax rate."

Then create another tax determination rule and enter the tax code for the old tax rate, (e.g., VAT 8% (Normal)) as well as the respective BP tax rule.

At the Product tax level, you now use the new tax level created in step one instead of the old one. For this tax determination rule, no condition for a period will be set.

When you manually apply the Old tax rate to the Product tax level, the Old tax rate and corresponding tax determination rule applies.

Other functions to be reviewed

Review the assigned tax codes in the following functions, if used.

• Account structures (GESGDA)
• Journal entry (GESGAS) for account core models and recurring journals