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Changes in the VAT rate
Changes in the VAT rate
Bledar Syla avatar
Written by Bledar Syla
Updated over a week ago

How to enter amounts that are exempt from VAT?

Create user-defined leasing components at the beginning. You can then access these in the 2nd step when creating a contract or editing it.

Under the settings you can create your own leasing components and select "VAT exempt".

This may be relevant if, for example, you pay vehicle tax to your lessor as a lease component.

The contract components can also be changed retroactively in this way.

What happens if the VAT rate changes?

Changes in the VAT rate during the contract term can be historically accrued and are included accordingly in the cost analyses and reports. The flexible reports are an exception here. See next point.

Change of VAT rate: impact on TCO and the cost reports

All reports are displayed in gross or net according to your account settings.

In the Report's menu item under the Cost Reports (TCO, Cost Analysis, Fleet Dashboard and Damage Reports), which show the costs for a specific period, the historical VAT rates are included.

Example: In January 2018, the VAT rate in Switzerland decreased from 8% to 7.7%. The gross leasing cost of a Swiss vehicle for 2018 is 0.3% lower than in 2017, while the net cost remains identical.

For the flexible reports (Avrios package Powerful Analytics or True Platform) on financing level this does not apply. There, the historical changes of VAT rates cannot be mapped.

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