Finnish VAT changes

The standard VAT rate in Finland will increase from 24% to 25.5% on September 1, 2024. The new rate will be applied to goods and services that are subject to the 24 percent VAT rate today. In general, VAT is applied when goods are handed over to the buyer, i.e. delivered.

More information about VAT reporting can be found here.

Managing the new VAT rate in Monitor ERP

We have updated the standard VAT report no. 30 with the new rate from version 24.6 of Monitor ERP. The release date for this version is September 23.

For those of you who report your VAT monthly, we recommend you report your VAT for August before you update to 24.6. There will be nothing wrong in your VAT report if you have updated your system before reporting, but the control check for differences will be made against the new VAT rate of 25.5% instead of the old rate of 24%.

The system will not automatically make any changes in your VAT settings, this change needs to be made manually.

VAT settings

We recommend adding the new VAT code for the new VAT rate and linking it to your VAT report. Below is an example of a new VAT code for domestic.

Please note! You can prepare your system and add new VAT codes at any time, you do not have to wait until updating to version 24.6.

Once you have reported your VAT for August, we recommend you change any default VAT codes on your VAT groups that need to be changed. Below is an example of a new VAT group for domestic.

Please note! Remember to also make the corresponding changes for the reverse charge VAT codes and groups.

Updating the VAT code on customer/purchase orders

Once you have changed the default VAT codes on your VAT groups, you can update the VAT code on your customer orders via the Synchronize customer order procedure. Mark the setting VAT code under Synchronize posting according to the example below.

You can update the VAT code on purchase orders in the Order list – Purchase procedure. For the list type Detailed you need to create a new presentation where you add the column for VAT code. You can mass update the VAT codes using the Find & replace function.

Please note! If you create new orders by copying, using the Save as functionality, the VAT codes on the old order will be transferred to the new order and will not be automatically changed by the system.

Updating the VAT code on invoice basis for sales/purchase

The VAT code on invoice basis needs to be updated manually.

You can update the VAT code for invoice basis – sales in the Review/Approve invoice or in the Register invoice directly procedures.

You can update your VAT code for invoice basis – purchase when linking the supplier invoice in the Register supplier invoice procedure.

Updating the VAT code in the chart of accounts

If you load your VAT basis from the VAT codes in chart of accounts, you can update your VAT code in the Chart of accounts list procedure and the list type VAT settings.