The VAT rate for several goods increased from 10% to 14% on January 1, 2025. On this page, you will find compiled information and considerations regarding the VAT change from Procountor's perspective.
How is the VAT change from 10% to 14% implemented in Procountor?
Changing the VAT rates for multiple products at once will be possible using the VAT configuration tool.
The VAT configuration tool was originally released for the general VAT rate change (24% -> 25.5%) in autumn 2024. The tool will be updated in January 2025 to include options for the 2025 changes as well.
Procountor will not automatically change the VAT rates of existing products.
When can VAT rate changes be made?
Modifying multiple products at once using the VAT configuration tool will be possible after the January version release (January 18th, 2025).
It is also possible to manually modify the VAT rates of products and invoice lines before this.
Are any changes to VAT information made automatically?
The VAT rates of existing products and invoice lines will not change automatically at any stage. Changes require the use of the VAT configuration tool or manual modifications.
However, in new Procountor environments established after January 1, 2025, a default VAT rate of 14% will be used for travel and expense report products that had a 10% VAT rate in 2024. Therefore, there is generally no need to use the VAT configuration tool in new environments created in 2025.
Does the increase in VAT rates from 10% to 14% require actions from Procountor users?
Yes. VAT rates are not automatically changed in existing data. The main user or a user with sufficient permissions must use the configuration tool or directly modify the product information in the product register to change the VAT rates. You can check the required permissions for the VAT configuration tool here.
Why are changes not implemented automatically in Procountor?
Our goal is to make the VAT change as smooth as possible for all users. For this purpose, we developed the configuration tool, which is now also being updated for the 2025 changes.
Unfortunately, we cannot make all changes automatically on behalf of our customers. By providing the configuration tool, we give the customer the decision-making power on when to update the new VAT rates in various data and settings. This ensures that the change happens in a controlled manner from the customer's perspective, and no changes occur in the product register's VAT information or other existing data without the customer's notice.
For sales and purchase products, it should also be noted that the 2025 change does not apply to all products with a 10% VAT rate. In automatic changes, there would be a risk of changing the VAT rates of incorrect products.
Can the VAT configuration tool select which products' VAT rates are changed?
Yes. First, you can choose whether to change the VAT rate of travel and expense report products and/or sales and purchase products. If necessary, these changes can be made in parts, for example, first for travel and expense report products and then for other products.
For sales and purchase products, you can open the product list for review and select the products whose VAT rates are to be changed. The list shows the products that currently have a 10% VAT rate.
Detailed instructions for using the VAT configuration tool will be updated on its own instruction page closer to the January release.
The VAT change tool page does not yet mention the 2025 changes?
We will update the instructions and this summary page by January at the latest. For now, the tool's instructions only present its current functions related to the autumn 2024 VAT changes.
The "basic features" of the VAT change tool remain unchanged, meaning it is still available from the same part of the software and requires the same permissions as before, etc.
How is the change implemented in Procountor Solo?
Updating the VAT rates of purchase register products in Procountor Solo can be done from January 18 onwards using the VAT configuration tool, in the same way as in the Procountor Financial versions. The VAT change tool can be found in the accountant's interface. Read more about the VAT change from Solo's perspective.
No automatic changes are made to existing information, so changing the VAT rates requires action from the user (accountant).