Changing the default VAT

In Finland the general VAT rate rises from 24% to 25,5% starting 1st of September 2024. This change requires actions from all Finnish organizations using Severa.

Read detailed instructions for VAT reporting from vero.fi before doing any actions in Severa.

1. Work hours always use the default VAT rate from Settings. Hours that should be billed with VAT rate 24% should be invoiced before changing the default VAT in Settings.
2. Products use the VAT set for them in Product registry (default VAT from settings or manually selected VAT).
3. Travel expenses use the VAT set for them in Travel expense registry (default VAT from settings or manually selected VAT).

Updating the VAT rate in Settings does not affect billable products and travel expenses retrospectively. Items added to projects need to be manually updated.

Admin permissions are needed to access Settings.

To be able to use the new VAT%, the new rate needs to manually added to Settings. Navigate to Settings > Organization > Company settings > Tax rates, and add the new tax rate.

In Severa, one tax rate is always set as the default, and used on all new invoices unless another tax rate is selected manually. To change the default tax rate, navigate to Settings > Organization > Company settings > Tax rates. Click the tax rate to edit it, and set it as default.

Navigate to Settings > Work time, travel expense & product registries to update VATs for both product and travel expense registries.

Add Invoicing VAT as a Column to the list of products to easily see where VAT is manually set to 24. If the field is empty, default VAT from settings is used automatically. By clicking the Invoicing VAT column you can sort the products to easily see the ones that need updating.

Mass-update action menu opens when you hover your mouse on the header row (product category name), and mark the checkbox. If you have several product categories, it is recommended to update one category at a time.

Fees waiting for billing can be updated using the mass-update feature in Reporting.

1. Navigate to Reports > Report creation
2. Click Financials
3. Go to Fees > Items to update both items and travel expenses
   • Use filter Billed: No to list items that are not yet billed from customer
   • Add value VAT% to see all items that require updating
4. Select fees by marking the checkbox in the header row
5. Select action Change Invoicing VAT% from the action menu that opens on top, and update the VAT

If you have added recurring fees to projects, and are using Platinum or Enterprise version of Severa, you have the possibility to mass-update recurring fees in one view.

Admin permissions are needed to access Tools.

1. Navigate to Settings menu
2. Go to Tools > Recurring fees
3. Add filter VAT%: 24% to narrow down the list of fees to items that require updating
4. Select fees by marking the checkbox in the header row
5. Select action Edit VAT% from the action menu that opens on top and update the VAT

If you don't have the mass-update option, recurring fees can be manually updated from project's Financials section. Project managers should check their own active projects, and update the fees.

If you have manually set customers' default invoicing VAT to 24% instead of using the organization default, you have the possibility to mass-update customer data in Reporting.

1. Navigate to Reports > Report creation
2. Click Customers, and navigate to Customers report
3. Add filter Default invoicing VAT: 24% to see the list of customers that require updating
4. Select customers by marking the checkbox in the header row
5. Select action Change default invoicing VAT% from the action menu that opens on top and update the VAT
   • You can either select the VAT manually or use company's default (Inherited from company's settings)

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