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 company's default VAT rate, which is set in the company settings. Hours that should be billed with VAT rate 24% should be invoiced before changing the company's default VAT percentage in settings.
2. Products and fees use the VAT percentage set for them in the Product registry (the product uses either the company's default VAT percentage, or a manually selected own tax rate).
3. Travel expenses use the VAT percentage set for them in the Travel expense registry (the travel expense uses either the company's default VAT percentage, or a manually selected own tax rate).

Updating the VAT rate in company settings does not affect billable products and travel expenses retrospectively. The VAT percentage for products added to projects needs to be manually updated.

Admin permissions are needed to access Settings.

To be able to use the new tax rate, the new rate needs to be 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 VAT information for products and fees, as well as travel expenses.

Add Invoicing VAT from the Columns section to the product listing to easily see the products for which VAT is manually set to 24%. If the field is empty, the default VAT percentage set in the company settings is used for the product. You can sort the product listing by clicking the Invoicing VAT column. This way you can easily see the products whose VAT rate needs to be updated correctly.

The mass-update function opens when you select the product category header row checkbox to activate it. If there are multiple product categories in use, we recommend updating the VAT information one product category at a time.

Fees waiting for billing can be easily updated using the mass-update tool in the Reporting section.

1. Navigate to Reports > Report creation
2. Select Financials
3. Open the Fees > Items report to update products and travel expenses
   • Select the filter Billed: No to list all products that have not yet been billed
   • Add VAT% from the Values section as a column in the report to see which products' VAT rate needs to be updated
4. Select products by marking the checkboxes
5. Select Update VAT from the menu that appears at the top and update the tax rate correctly

If you are using Severan Platinum or Enterprise edition, and you bill recurring fees from projects, you can make a tax rate change for recurring fees in one view using the mass-update tool.

Admin permissions are needed to access Tools.

1. Open the Settings menu from the top right corner of Severa
2. Navigate 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 Update VAT from the action menu that opens on top and update the VAT

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

If you have manually set the customer's default invoicing VAT to 24% instead of using the organization's default, you need to update the customer information through the Reporting section.

1. Navigate to Reports > Report creation
2. Click Customers and go to the 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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