There is no functionality for own use in value added taxation in Procountor. However, the own use VAT entries can be created with the following model presented in this article. The model and its basic principles can be used for both general own use situations of goods and services as well as for own use situations of construction services.
It should be noted that the model presented in this article is just an example about how transactions of own use VAT can be handled in Procountor. For example, there might be different kinds of industry-specific characteristics that should be verified from the Finnish Tax Administration and/or from the Accounting Board (Kirjanpitolautakunta). The basic model presented in this article can be applied and modified to fit the necessary company- or organization-specific situations in a desired way.
The simple example presented in this article illustrates an own use of construction services situation in which the own use VAT is presented as an expense in the income statement and in which the VAT is visible in field 301 of Tax return for self-assessed taxes using Domestic VAT status of sales and VAT percentage of 25,5%.
First, an account for the own use of construction services entries is added to the chart of accounts:
- 423, Adjustment items of purchases: for example, the new account can be named and numbered as 4388, Own use VAT of construction services
Tax base of the own use of construction services originates from the following example service that has been entered to accounting using Construction reverse VAT 24 % VAT status and VAT deduction percentage of 0% (no VAT liability is generated):
In order to include the VAT of own use in field 301 of tax return for self-assessed taxes, the following receipt is created for own use VAT entries (the picture can be opened in a larger size to a new tab by clicking the picture):
Row of tax base (20 000,00 euros) has VAT percentage of 24%, VAT type Sales and VAT status Domestic which place the VAT proportion, 4 800,00 euros, calculated from the tax base to VAT summary,
and to VAT liability to field 301 and to payable VAT to 308 in the tax return for self-assessed taxes:
The tax return of self-assessed taxes includes also construction service purchase entries which, however, reverse each other in fields 318 and 307. Detailed content of the tax return can be examined by clicking Search all transactions button (the picture can be opened in a larger size to a new tab by clicking the picture):
Based on the reversing entry for tax base, the income statement displays an expense of 4 800,00 euros to the account 4388: