What is a VAT code?
A VAT code is used to determine how a transaction should be reported in the VAT return. In other words, the VAT code determines which box in the VAT return the transaction amount should be reported in.
A VAT code is linked to a bookkeeping account. When a transaction is posted to an account with a VAT code, the VAT information is automatically included in the VAT report.
The VAT codes are already mapped to the Swedish Tax Agency's VAT return and its corresponding reporting boxes. Therefore, it is important that the correct VAT code is assigned to the correct account to ensure that the VAT return is accurate.
The difference between a VAT code and a VAT rate
VAT codes and VAT rates are often confused, but they serve different purposes:
A VAT rate determines the percentage of VAT applied to a transaction, for example 25%, 12%, or 6%.
A VAT code determines how the transaction is reported in the VAT return, regardless of the VAT rate used.
The VAT rate is determined within the accounting system, while the VAT code is assigned to the transaction in Mynt.
When are VAT codes used?
VAT codes can be used if your accounting integration supports them. Currently, Business Central, Visma Net, and Tripletex support VAT codes.
Just like VAT rates, VAT codes are assigned to a category under Settings > Accounting.
How other customers use VAT codes
Each category is configured with a specific VAT code, ensuring that the correct code is automatically applied whenever a cardholder selects that category for a purchase.
For reverse charge VAT, customers often create categories such as Purchases outside the EU and assign the appropriate reverse charge VAT code to that category.
Important to keep in mind
Do not change VAT codes unless you are certain how the account should be reported.
An incorrect VAT code may cause amounts to be reported in the wrong box of the VAT return, resulting in an incorrect VAT declaration.
When creating a new category, make sure the correct VAT code is assigned before it is used.