In this article, you will learn:
- Reason for VAT Display as 0%
- Example of Revenue and Payment Transactions
- Accounts for Revenue Bookings
Reason for VAT Display as 0%
The VAT (taxes) is shown as 0% for cash register (1000) and bank (1200) in the Tax consultant portal because these accounts record (electronic) cash movements, which are by definition VAT-less. VAT is charged for revenue bookings, not for cashflow.
Example of Revenue and Payment Transactions
To give you a practical example: An over-the-counter sale always involves two transactions, revenue and payment:
- Sale of a good: The gym sells a shake for 3,00 EUR incl. VAT to the customer. This transaction is the revenue transaction which actually includes the VAT as indicated. In this moment, the gym generates a claim against the customer, because the good is sold, and the shake went over the counter. Revenue is generated, and the customer has to pay.
- Payment: The customer hands over 3,00 EUR in cash to the cashier. This transaction is purely an exchange of currency, be it in cash or cashless. This transaction balances the claim of the gym against the customer. Since we only transfer money here and the revenue incl. VAT has already been booked, it’s just recorded as a payment booking without VAT.
Accounts for Revenue Bookings
All revenues incl. VAT bookings are recorded on the accounts in the 84xx number range. This is where you can see how much revenue has been generated and what rates they’re assigned to. As you might notice, it’s normal that payments are usually lower than claims in any given month. This happens because some customers just simply fail to pay their monthly subscription fees, which leaves the claim with a full or partial open amount.