What is the pro rata and who applies it??
Being on an IVA pro rata means that I can not deduct all deductible VAT, usually because not all of my sales are VAT. Therefore, a company that rents floors and premises, can deduct the VAT supported to 100% of the expenses directly affecting the premises, (since the rent of floors are invoiced without VAT) and of the common expenses of the two activities , only the proportional part of the deductible part of VAT supported (management, office expenses, company own supplies and etc …) can be deducted, based on the percentage of sales of the previous year of provisional form, and regularizing at the end of this financial year.
Similarly, it happens to companies that have sales with and without VAT (for example VAT-exempt formations) where VAT invoice expenses can be deducted at 100%, the costs corresponding to sales without VAT can not be deducted the same, and of the common expenses, the corresponding percentage that corresponds.
How to set up the pro rata in Odoo?
Next we will show step-by-step how to configure our Odoo to apply the pro rata to the common invoices automatically. This explanation has been based on Odoo version 8.0, although it can be applied to lower versions without problem, and in higher versions taking into account that there are no tax codes.
Example: A company that is 1% pro rata, this means that the company can deduct 1% of the VAT supported. We will set the VAT rate to 21%, and it can be applied to other taxes of 10%, 4%, investment assets, intra-community and so on.
NOTE: In the intra-community it is applied exactly in the same way, since it affects 100% of VAT, while only supporting what you can deduct.
In the present case, 21% of VAT, the company can deduct 0.21% and can not deduct 20.79% of the total of 21%.
1.- First we created a tax with the following children, considering what it indicates in red:
2.- In the children, we configure the non-deductible VAT Tax, taking into account what is indicated in red. We do not indicate an account of invoice taxes so that it automatically selects the same account indicated in the line of the invoice as an expense, automatically deducting the VAT as non-deductible from the account in the same account.
3.- Now we create another tax for the deductible VAT, taking into account what has been commented in red.
4. – Now we can configure the pro rata fiscal position, in case we want that in certain suppliers already apply the VAT of proportion in all cases:
5.- The result of how VAT is applied automatically with a pro rata of the previous example is as follows:
NOTE exercise change: To update the pro rata in each exercise, you only need to modify items 2 and 3, taxes for each tax created with a pro rata.
NOTE intra-Community: An intra-EU pro rata tax position may be created, so that it automatically applies intra-Community pro rata taxes.
We hope that this manual will be useful for setting up the Odoo tax prorated.
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His fiscal, accounting and labor consultant specialized in Odoo since 2010.