Every entrepreneur, regardless of legal form, can opt for the new exemption scheme. This also applies to an association or foundation. Your choice is valid for at least 3 years or until you exceed the €20,000 turnover threshold. Under the new KOR (Small Business Scheme), you do not charge VAT on your sales, and you cannot deduct VAT on expenses (input tax). You are allowed to keep a simplified VAT administration and are not required to file VAT returns.
If you use this exemption scheme, you will need to make some adjustments in the settings of your administration.
Activating the Exemption Scheme
Check Settings
Adjust VAT rates
To activate the correct VAT rates, follow the steps below:
Navigate to Settings in the left-hand menu;
Select VAT;
Open the VAT rates listed below and activate the Hide setting:
Sales:
21%;
9%;
Purchases:
21%;
9%;
Open the following VAT rates and deactivate the Hide setting:
Sales:
VAT Exempt.
Purchases:
VAT Exempt.
Choose Save after changing the VAT rates.
Edit payment conditions
According to the new regulations, the text Invoice exempt from VAT pursuant to Article 25 VAT Act must be included on your invoices. This text can be added to your existing payment terms.
To modify this, follow the steps below:
Navigate to Settings in the left-hand menu;
Select Payment conditions;
Open the payment term(s) you are using;
Modify the payment term by adding the text: Invoice exempt from VAT pursuant to Article 25 VAT Act;
Save to apply the changes.
Edit Accounting Settings
Since you are VAT-exempt under this scheme, this must also be reflected in Informer. To do this, follow the steps below:
Go to Settings in the left-hand menu;
Select Accounting Settings;
Under VAT return, select My company is not vat liable;
Save to apply the change.