VAT in a supplier order: the "VAT" and "Price excl. VAT" switches
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Two switches control VAT in a supplier order: "VAT" includes tax in the document total, and "Price excl. VAT" defines what you enter in the "Price" field: a price without VAT or with VAT. Bimp always stores the base price (without VAT) and calculates the amount from it, so switching the mode does not change the line amount.
How Bimp calculates VAT in a supplier order
Bimp calculates VAT in each line of a supplier order from the base price, that is, the price without VAT. The base price is the only value the system stores, and it does not change when you switch the input mode.
Three values are used for each line:
| Value | What it means |
|---|---|
| Base price | The price without VAT; stored in the document |
| VAT rate | The percentage in the line, for example 20% or 7% |
| VAT coefficient (K) | K = 1 + rate / 100; for 20%, K = 1.2 |
The line amount depends on the main “VAT” switch:
- “VAT” on: amount = base price × quantity × K;
- “VAT” off: amount = base price × quantity.
What the main “VAT” switch does
The “VAT” switch above the products table defines whether the document total includes tax.
- On. The “VAT rate” column and the “Price excl. VAT” switch are active. The amount is calculated with VAT.
- Off. The “VAT rate” column and the “Price excl. VAT” switch are inactive. The “Price” field shows the base price, and the amount of all lines (both new and already filled in) is recalculated without VAT.
Turning “VAT” off is convenient when you need amounts without tax for internal accounting.
How to enter a price with or without VAT
The “Price excl. VAT” switch works only when “VAT” is on, and it defines what you enter in the “Price” field.
| Mode | What you enter | Example (rate 20%) |
|---|---|---|
| “Price excl. VAT” on | Price without VAT | Price 100 → base price 100, amount 120 |
| “Price excl. VAT” off | Price with VAT | Price 120 → Bimp calculates base price 100, amount 120 |
This way you enter prices in the form the supplier showed them in the invoice, without recalculating them manually.
- Open the supplier order on the “Products, services” tab.
- Turn on the “VAT” switch.
- Depending on the supplier’s invoice, turn “Price excl. VAT” on or off.
- Add items, enter the price and check the “VAT rate” in each line.
What happens when you switch the mode or change the rate
Switching “Price excl. VAT” in a filled-in line does not change its amount; it only changes how the “Price” field is displayed:
- from “without VAT” to “with VAT”: the field shows base price × K;
- from “with VAT” to “without VAT”: the field shows the base price.
Changing the “VAT rate” in a line (when “VAT” is on) recalculates the amount. In the “Price excl. VAT” mode, the entered price stays unchanged and the amount is adjusted to the new rate.
FAQ
What changes in the amount if I switch "Price excl. VAT" in a line that is already filled in?
Nothing. The line amount with VAT stays the same; only the price shown in the "Price" field changes: with VAT (base price × coefficient) or without VAT (base price).
What happens if I turn off the main "VAT" switch?
The "Price" field shows the base price, and the document total, including lines already filled in, is recalculated without VAT. The "Price excl. VAT" switch and the "VAT rate" column become inactive.
How do I enter a price the way it is shown in the supplier's invoice with VAT?
Turn on "VAT", turn off "Price excl. VAT" and enter the price with VAT. Bimp calculates and stores the base price without VAT itself.
More about this in Bimp: Procurement in Bimp