VAT Shareout "Ventilazione"

VAT Shareout ("Ventilazione" in Italy) is a specific VAT calculation tipycal of small business that handles multiple VAT rates. 

 These business can declare to government that: 

 

 Purchases are well divided per VAT rate 

 Sales are made in aggregated form, without applying any VAT rate  

 

 To pay the right taxes, these business need to calculate "Ventilazione" that is VAT rate to apply to sales proportionally to purchases. 

 The calculation is made starting from the 1° january of each years to the end of each VAT period. 

 Example 

 

 

 

 Month 

 VAT rate 

 Purchase amount 

 Shareout % 

 

 

 January 

 4 % 

 10.000 

 16,53 % 

 

 

 January 

 10 % 

 33.000 

 54,55 % 

 

 

 January 

 22 % 

 17.500 

 28,92 % 

 

 

 Total 

 

 60.500 

 100 % 

 

 

 

 The aggreate sales of January are 97.000 so the VAT to pay is: 

 

 

 

 VAT rate 

 Shareout % 

 Sales amount (incl. VAT) 

 VAT amount 

 

 

 4 % 

 16,53 % 

 16.034 

 641 

 

 

 10 % 

 54,55 % 

 52.914 

 5.291 

 

 

 22 % 

 28,92 % 

 28.052 

 6.171 

 

 

 Total 

 100 % 

 97.000 

 12.103 

 

 

 

 New purchases of February increase previous totals and generate a new shareout for February sales: 

 

 

 

 Month 

 VAT rate 

 Purchase amount 

 Shareout % 

 

 

 January + February 

 4 % 

 22.000 

 18,72 % 

 

 

 January+ February 

 10 % 

 59.500 

 50,64 % 

 

 

 January + February 

 22 % 

 36.000 

 30,64 % 

 

 

 Total 

 

 117.500 

 100 % 

 

 

 

 And so on... 

 Setup 

 In "VAT Posting Setup" table mark interested purchase lines for "base" in the shareout calculation. 

 

 Also mark the sales lines: 

 

 That ones aggregated "to be sharedout" 

 That one after calculation "sharedout" 

 

 For lines to be sharedout is necessary also to specify the G/L account for reversing the calculated VAT (sales are posted "included VAT" and need to be reducted for the amount of VAT). 

 

 Before VAT settlement, run and post VAT shareout calculation.