Configure taxation (VAT & GST)

In Rentman, the normal VAT rates for your country are already configured. However, you may want to change the VAT rates of your projects and invoices. For example, when you are doing business with a foreign customer or when the VAT rate in your own country changes. In this article, we explain how to change and choose the default VAT rates in Rentman.

Note: If you are from the USA or Canada, the VAT system doesn't apply to you. An article about Changing the Tax settings is being worked on and will be published soon.

In this article:
> General information
> What are VAT classes?
> What are VAT schemes?
> How do I choose a VAT scheme?
> How do I create a new VAT scheme?
> Frequently asked questions

Available for: Lite Classic Pro

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General information

The normal (high, low and zero) VAT rates for your country are already correctly set in Rentman. However, sometimes you may want to apply different VAT rates to a project or invoice. For example:

  • When the VAT rates change in your own country.
  • When you have a specific customer from a country where different VAT rates apply.
  • When you want to apply a reverse charge VAT for cross-border business
  • When either the high or low rate should be forced for the project and/or invoice.

The different VAT rates (high, low, zero in most countries) are called VAT classes in Rentman.

When you want to have different VAT rates for a project or invoice, you create a VAT scheme. In a VAT scheme, you choose the type of VAT rate (high/low/zero, fixed, or reverse charge) and the percentage of each rate.

You then choose which VAT scheme you want for your project or invoice.

What are VAT classes?

VAT classes are the different VAT rates that apply to your items.

Example of VAT classes (for most countries):

  • High rate
  • Low rate
  • Zero rate

Example of VAT classes (for countries with single main rate) (Denmark):

  • Standard rate
  • 0% rate

Tip: You may create any other VAT classes that you wish. Read this section for more information.

How do I choose the default VAT class?

You can choose the default general VAT class, and also the default class for:

  • Transport and crew functions
  • Additional costs and additional invoice lines
  • Insurance
1. Go to the Configuration.png module -> Financial -> Financial.
2. Select your desired VAT classes in the dropdown menus.
3. Click  Save.png to save your changes.


How do I choose the default VAT class of equipment?

Tip: If you want to set the class of multiple equipment items at once: select Select.png the items, click the More actions button More.PNG, and choose Edit multiple items.

1. Go to the Equipment.png module.
2. Double click on an item to edit its details.
3. Navigate to the Financial section in the Data.png tab of your equipment item.
4. Next to VAT class, choose your desired VAT class from the dropdown menu.
5. Click  Save.png to save your changes.


How do I create and change a VAT class?

1. Go to the Configuration.png module -> Financial -> VAT classes.
2. Click add_button.png to create a new class.
3. Enter a name.
4. Enter the percentages and accounting codes where needed.
5. Click  Save.png to save your changes.


What are VAT schemes?

VAT schemes contain the percentages of your high and low VAT rates.

The following VAT schemes are already present in Rentman. These are useful to have, and you may edit them as you wish. Alternatively, you may create any other scheme that you wish.

  • Default
    This scheme contains the current rates in your country, and will probably be used for most projects
  • Force x%
    This scheme contains a fixed rate that you can apply to your entire project or invoice.
  • VAT reverse charge
    This scheme contains a 0% rate that is used for cross-border business

How do I choose the default VAT scheme?

By default, your projects and invoices carry the default VAT scheme that you've configured in Rentman. However, if you want to apply different VAT rates, you may choose another scheme instead of the default one. The scheme that you

You can choose which VAT scheme will be selected by default for all new projects and invoices that you create. This is useful when most of your projects and invoices will use the same scheme.

Note: You can always choose to apply a different VAT scheme to a project or invoice.

1. Go to the Configuration.png module -> Financial -> Financial.
2. Next to Default VAT scheme, select your desired scheme in the dropdown menu.
3. Click  Save.png to save your changes.


How do I choose the default VAT scheme for foreign contacts?

When you are doing business with a foreign customer, it's useful to apply another VAT scheme specifically to them. When creating projects and invoices for that customer, the VAT scheme you want for them will automatically be applied.

1. Go to the Contacts.png module.
2. Double click on a contact to edit their details.
3. Go to the Payment.png tab.
4. Under Payment information -> VAT scheme, choose the desired VAT scheme from the dropdown menu.
5. Click Save.png to save your changes.


How do I choose a VAT scheme?

Note: By default, your projects and invoices carry the default VAT scheme that you've configured in Rentman.

How do I choose a VAT scheme in my project?

1. In an opened project, go to the Financial.png tab.
2. Next to VAT, choose your desired scheme in the dropdown menu.
3. Click  Save.png to save your changes.


How do I choose a VAT scheme for my invoice?

1. Go to the Invoices.png module.
2. Add a new invoice by clicking on add_button.png, or select an existing invoice and click Bewerken_klein.png to edit the existing invoice.
4 Scroll to the bottom, and Next to VAT, choose your desired scheme in the dropdown menu.
5. Check the other invoice details, and click (Re)generate.
6. Click Save.png to save your changes.


How do I create a new VAT scheme?

Note: Be aware that there are already VAT schemes present in Rentman. You can edit these if needed, so it may not be necessary for you to create a new one.

1. Go to the Configuration.png module -> Financial -> VAT schemes.
2. Click add_button.png to create a new scheme.
3. Enter a name.
4. Choose between the the following rate types:

Rates.png
These are the VAT classes that you've configured in Rentman (high, low, zero, etc.)

Fixed_rate.png
A rate that will be applied to the entire project. 

VAT_reverse_charge.png
A 0% rate for cross-border business.

5. Enter the percentages and accounting codes where needed.
6. Click  Save.png to save your new scheme.


Frequently asked questions

I'm from the USA or Canada. How do I configure and use tax schemes and classes?
An article about Changing the Tax settings is being worked on and will be published soon.

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