This is only for companies which only perform a part of their operations as a taxable activity, with the remainder of their operations being a tax free activity. In this case, enter the factor for calculating the deductible share in the VAT Account window (Article 41 ZDDV).

Let's look at a simple example for valuating stock with a deductible share:

1. Settings for deductible shares in the VAT Account

Click VAT in the Goods menu. The VAT Account window will appear. Click the VAT Account tab and enter the VAT share in the Share column.

2. Receiving an Article during a Month when the Deductible Share is Applicable

Create a receiving document. You'll be receiving one piece of the item ASSET04 with a value of 100 EUR from a domestic supplier (no discounts or added costs).

In the Valuation Price column, you'll notice that the price is not 100 EUR (price minus VAT), but 104 EUR, that is, 100 EUR + 20% of the value of the VAT (20 EUR).

In the costing tab, this value is also listed separately in the Deductible Share field:

3. Posting a Document with a Deductible Share

Post a document with a deductible share using the normal procedure.

Only 80% of the normal value is transferred to the tax account.

80% of 20 EUR = 16 EUR. The remaining 4 EUR goes directly to stock.

4. Warehouse Card

The warehouse card will also show that ASSET04 is worth 104 EUR.

4. Items Register

If the settings in the document are correct, the information will also be displayed in the Costing/Pricing panel of the Items register: