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Frequently asked: Finnish General VAT rate change on Sep 1, 2024

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What is it about?

The standard VAT rate in Finland will increase from 24 percent to 25.5 percent starting from 1.9.2024.  More information: eduskunta.fi

 

When is the old VAT rate of 24% used and when the new 25.5%?

Please verify this with your finance department or accounting office. The value-added tax rate is generally determined based on whether the service has been provided or the goods have been delivered to the customer before or after September 1. For more information, see the tax authority's guidelines and Tilisanomat article.

 

What should we do in PSA?

Heeros will release in PSA the technical support for the decimal containing 25.5% VAT rate in the evening of August 14, 2024. After that (from Aug 15 >), customers are required to make the updates to settings and project materials as instructed in our service release in the program themselves. Initially, it is advisable to send invoices with the old VAT rate first, and then update the settings for the new VAT rate invoicing. For more detailed instructions on the procedures, see below.

 

How do we make VAT rate changes to quotes?

The required, already formed rows of quotes need to be modified one by one.

For new rows, the VAT rate increases from the default settings. New quote rows can also be imported using an Excel file.

 

How do we make VAT rate changes for scheduled invoices?

The necessary, already formed scheduled invoice rows need to be edited individually. In the New reports > Scheduled invoices - view, you can create a new report to examine open scheduled invoicing rows with the desired filters (e.g. invoice date and VAT %). You can open a project appearing on the list in a new tab by clicking on it with the Ctrl key held down (on Mac use cmd) to edit the scheduled invoicing row.

 

How do we make VAT rate changes for upcoming automatic invoices?

For manually added automatic invoicing rows, the already formed rows must be edited individually.

If you invoice open Invoice Material automatically for a project, the VAT percentage for these rows will be taken from the default setting (e.g. hours) or from the material row (e.g. scheduled invoice row).

 

How do we make VAT rate changes for waiting sales invoices?

New reports > Invoicing view allows you to create a new report to review the rows of waiting invoices with your desired filters (e.g., invoice date and VAT %). You can open the invoice displayed in the list in a new tab by clicking while holding the Ctrl key (on Mac, use cmd) for editing the invoice.

 

How do we create project invoices during the transition period?

  • First, make sure that the project material has the correct VAT rates.
  • Create and send invoices with the old VAT rate first, using the Invoicing material period function (e.g., August).
  • After that, the admin user can change the default VAT rate for sales invoices in the general settings from 24 to 25.5% and update the VAT settings for integrations.
  • Finally create and send invoices with the new VAT rate (e.g., September).

The same logic applies to mass invoicing, meaning you can initially mass-invoice the old VAT rate invoices when the default VAT rate has not been changed yet in the settings. For narrowing down the invoices to be generated, you can utilize the Mass Invoicing view's Invoicing material period function. After that, update the default VAT rate for sales invoices and integrations in the settings, and then proceed to mass-invoice with the new VAT rate.

 

How do we make VAT rate changes in the product register?

Once most of the invoicing with the old VAT rate has been done (the VAT rate of the product will be fetched for new rows to be created), updating the VAT rate (or net prices) of products can be done either row-by-row directly in the product list or by an admin user in mass via Excel: Instructions.

  • If there are multiple VAT rates in the register, you can filter the products with 24% VAT rate under Products > Add filter > VAT % is 24.
  • By importing from Excel or correcting information directly in the Products list, the details will only be updated to the Products list, not to CPQs or product catalogs. These need to be edited manually for now.
  • Example image of mass update of VAT percentages:

 

How do we change the default VAT rates in the settings?

Once the majority of invoicing/quotes with the old VAT rate have been created and sent, the admin user can change the default VAT rates from 24 to 25.5%. These settings determine the VAT rate at which new rows are generated, but the VAT rate can be changed on a row-by-row basis if needed later on.

 

How do we change the integrations' VAT codes or percentages in the settings?

If possible, please generate and send the invoices with the old VAT rate first, and then update the integration settings. When the new VAT rate is to be applied, changes to the VAT codes and percentages in the integration settings are to be done by the Admin user under Settings > Integrations > (selected interface) > Edit.

  • Consistent VAT settings are required between the programs for successful data transfer. In addition to the mentioned actions in PSA, changes may also be required in the other program.
  • Depending on your interface, the new VAT rate will be updated in PSA either on the existing setting line or a new one will be created, or no modifications to integration settings are needed at all.
  • We recommend testing with one invoice first to ensure everything is functioning correctly before a broader transfer.
  • Especially during the transition period, invoicing will require both the old and new VAT rates side by side. Due to credit notes, the old VAT rate may still be needed for several months.
  • Interface-specific details below. For additional questions, please contact the system provider of the interface or our support.
    • Talenom: The new VAT rate is added to the integration settings of PSA under Tax Rates and Sales Accounts (e.g., sales account 3000 may appear on the list with two different VAT rates).
    • Heeros Sales and Purchase Invoices/Netvisor/Merit: VAT codes are updated to correspond to each other in both PSA and the other program.
    • Procountor/Maventa/Fennoa/Fivaldi/Fortnox/eFina/DATEV/TietotiliOnline/Ropo Capital: No actions required in PSA integration settings, VAT % is transmitted with invoice data.
    • Other integration: Please contact our support.

 

How do I correct an invoice sent with the wrong VAT rate?

If a sales invoice has already been transferred to the interface and sent to the customer with an incorrect VAT rate, it can be credited in PSA using the Create a credit invoice function. The credit invoice will copy the VAT details from the original invoice. After that, a new invoice with the correct VAT information can be created.

 

How can I separate different VAT rates in new reports?

You can add the VAT % column from the Columns menu to make it visible in reports view.

You can also filter search results by different percentages in the section Filters.


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