VAT settings

You can find the VAT settings under Settings → Bookkeeping settings → VAT settings. Two things are configured here: the length of the VAT period and the VAT posting method.

Length of the VAT period

The length of the VAT period determines how often the company reports VAT to the Tax Administration. The options are:

Month — VAT is reported monthly. A typical choice for companies with annual revenue over €100,000.

Quarter — VAT is reported quarterly. Suitable for companies with annual revenue between €30,000 and €100,000.

Year — VAT is reported once a year. Suitable for small companies with annual revenue under €30,000.

Not liable for VAT — choose this if the company is not liable for VAT.

You can check your company's reporting period length in OmaVero. You can also change the period length later from the VAT Periods tab.

VAT posting method

The VAT posting method determines how VAT is recorded in the bookkeeping.

Net VAT posting means that VAT on sales and purchases is recorded to the same VAT payable account. The account then shows directly the net VAT liability or receivable. This is the simpler method and suits most small companies.

Split VAT posting means that VAT on sales is recorded to a separate VAT payable account and VAT on purchases to a separate VAT receivable account. This gives a more detailed view of VAT movements and suits companies that want to track sales and purchase VAT separately. No separate reconciliation of VAT payables and receivables is done automatically, for example at the end of a VAT period — the user must do this as a separate posting. 

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