- What is it about?
- When do we use the old VAT rate of 10% and when the new 14%?
- What do we need to do in PSA?
- How do we change the VAT rate for quotes?
- How do we change the VAT rate for scheduled invoicing?
- How do we change the VAT rate for future automatic invoices?
- How do we change the VAT rate for waiting sales invoices?
- How do we create project invoices during the transition period?
- How do we change the VAT rate in the product registry?
- How do we change the default VAT percentages for expense types in the settings?
- How do we change the VAT codes or percentages for the integrations in the settings?
- How do I correct an invoice sent with the wrong VAT percentage?
- How do I separate different VAT percentages in the new reports?
What is it about?
Starting from January 1, 2025, most goods and services currently falling under the 10 percent value-added tax will be transferred to the 14 percent value-added tax category.
You can find more information on this topic on the Finnish tax authoritys' website or ask from your own finance department/accounting firm.
When is the old VAT rate of 10% used and when is the new 14% used?
Check with your finance department or accounting firm. The value-added tax rate is primarily determined by whether the service was performed or the goods were delivered to the customer before or after January 1, 2025.
What do we need to do in PSA?
The change will require actions in PSA if your sales, expense, or travel invoices include products and services whose value-added tax rate changes on January 1, 2025.
You can make the necessary changes yourself in PSA. More detailed instructions for the actions can be found below.
How do we change the VAT rate for quotes?
Changes to VAT rates made in the product register do not apply to already created quote lines, meaning that existing quote lines must be edited individually if needed. New reports > Sales view allows you to create a new report that lets you review the quote lines with your desired parameters (e.g. VAT %). You can open the project visible in the list in a new tab by clicking it while holding the Ctrl key (Cmd on Mac) to edit the quote.
The VAT rate for new rows will rise from the default setting in the general settings. New quote rows can also be imported using an Excel file.
How do we change the VAT rate for scheduled invoicing?
Changes to VAT percentages made in the product registry do not apply to already created invoicing material lines, meaning that existing invoicing material lines must be edited individually if necessary. New reports > Scheduled invoicing view, you can create a new report that allows you to view open scheduled invoicing with your desired filters (e.g., invoice date and VAT %). You can open the project displayed in the list in a new tab by clicking it while holding the Ctrl key (on Mac, cmd) to edit the scheduled invoicing.
How do we change the VAT rate for future automatic invoices?
Changes to VAT percentages made in the product register do not apply to already generated automatic invoicing lines, meaning that already created automatic invoice lines must be edited individually if necessary (e.g. end the current invoicing row until the end of the year and add a new row for next year). If you are invoicing open invoicing material for a project with automatic invoicing, the VAT percentage for the lines is retrieved from the default setting (e.g. hours) or from the material line (e.g. scheduled invoicing).
How do we change the VAT rate for waiting invoices?
New reports > Invoicing view allows you to create a new report that helps you view the lines of waiting invoices with your desired filters (e.g., invoice date and VAT %). You can open the invoice visible in the list in a new tab by clicking on it while holding down the Ctrl key (on Mac, cmd) to edit the invoice.
How do we create project invoices during the transition period?
• First, check that the invoicing materials have the correct VAT percentages.
• First, create invoices for the old 10% VAT rate using the material period function (e.g., December 2024).
• After this, the admin user can go and change the VAT percentage for the necessary products in the product register from 10% > 14%.
• Only then create invoices for the new 14% VAT rate (e.g., January 2025).
How do we change the VAT rate in the product register?
Once the majority of the old 10% VAT invoices have been created (the product's VAT rate will increase for new lines being created), updating the products' VAT rate and, if necessary, prices or sales accounts can be done either line by line directly in the product list, or by the admin user in bulk using Excel: Instructions.
• If there are products with multiple VAT rates in the register, you can filter the 10% VAT products to be updated in Others > Products > Add search > VAT % is 10.
• Data corrected via Excel import or in the Products list will update only the Products list, not the CPQ product packages or product catalogs. These must be edited manually for the time being.
How do we change the default VAT rates for expense types in the settings?
This setting determines the VAT rate with which new lines for expense and travel invoices are created, but the VAT rate can later be changed on a line-by-line basis: Settings > Feature settings > Expenses > Expense types for reporting.
How do we change the VAT codes or percentages in the integration settings?
Settings > Integrations > (selected integration) > Edit.
• There must be consistent VAT settings and accounts between programs for the transfer of materials to be successful. In addition to the procedures listed below for PSA, changes may be required in another program as well.
• We recommend first testing with one invoice to ensure everything works correctly before a larger transfer.
• Especially during the transition phase, both the old and new VAT percentages will be used in parallel on invoices. Due to credit invoices, the old 10% VAT rate may still be needed for several months.
• Integration-specific additional information is below. For further questions, please contact your system provider or our support.
• Talenom: If VAT percentage of 14% is missing, it should be added to the PSA interface settings in the Tax rates and Sales accounts.
• Heeros Sales and Purchase Invoices/Netvisor/Merit: VAT codes and accounts will be updated to correspond in both PSA and the other program. If necessary, confirm the correct procedure with your finance department/accounting firm.
• Procountor/Maventa/Fennoa/Fivaldi/Fortnox/eFina/DATEV/TietotiliOnline/Ropo: No actions required in PSA interface settings, the invoicing material will carry the VAT %.
• Other interface: please contact our support.
How do I correct an invoice sent with the wrong VAT rate?
If the sales invoice has already been transferred to the integration and sent to the customer with an incorrect 10% VAT, it can be credited in PSA using the Create credit note functionality. The credit note will copy the VAT information from the original invoice, and finally, a new charge invoice can be created with the correct VAT information.
How can I separate different VAT percentages in the new reports?
You can display the VAT % column from the Columns menu on the right.
You can also filter search results by different percentages from the Filters section.
Learn more about the new reports here or watch the video. (in Finnish)