This guide walks you through how to enter invoices so they are included in a tax return, how to create a VAT return, an additional return, or a VAT control statement.
Entering documents for the VAT return
Issued invoices are included in the VAT return in the month in which their taxable supply date falls:
Received invoices are included according to the date on which the taxable supply is claimed:
The taxable supply date (DUZP) can also be preset in the company settings under the Modules - Purchasing - Purchase tab:
Invoices are included in the VAT control statement and VAT return based on the country, VAT line, and control statement line filled in on the invoice:
VAT must of course be calculated on the invoice; if the amount has a zero rate, it will not be correctly included in the return:
Creating a VAT return
The return is created via the menu Accounting - Accounting Outputs - VAT Return.
The return creation wizard will open.
Here you select the period for which you want to generate the return. The coefficient for calculating the proportional part of the tax deduction is set to 100 by default.
VAT reduction applies when a business uses received supplies both for activities that entitle it to a VAT deduction and for VAT-exempt activities with no right to deduction.
• A reduction coefficient is calculated and applied to the input VAT.
• At the end of the year (tax period), the coefficient is settled.
The settlement coefficient is calculated as a percentage where
the numerator is the sum of taxable supplies entitling the taxpayer to a VAT deduction,
the denominator is the total of the numerator value plus the sum of VAT-exempt supplies made by the taxpayer with no right to deduction.
The exact calculation of this coefficient, including the rounding method, is also set out in Section 76 of the VAT Act.
This coefficient is calculated when compiling the VAT return for the last VAT period of the year.
It is applied within the VAT return for the last VAT period of the year.
It is used for the following year as the advance coefficient.
The deduction adjustment then represents the difference between the calculated deduction and the claimed deduction (line 53).
All of these calculations must be performed outside of Flexi. In the last tax period, you simply enter your calculated values into the relevant fields in Flexi.
The deduction reduction also needs to be reflected on the received invoice in the VAT Line field. The code list includes lines whose names contain the abbreviation KR. In the case of a reduced deduction, you must select this line on the invoice.
On the next page of the wizard, select whether this is a standard or an additional VAT return.
If an error is discovered by the last day of the following month, you can file a standard corrective return, which fully replaces the already submitted standard return. If the error is discovered after a longer period, you must file an additional return showing only the differences compared to the standard return. You can read more about additional returns below.
After confirming with the Next button, simply choose whether you want to view the return form as a PDF or export it as an XML file that can be uploaded to the Tax Administration portal EPO.
The application will then ask whether you want to save the return:
We strongly recommend not saving returns that you are not yet submitting. This save function is intended exclusively for the potential creation of an additional tax return!! The saved return cannot be viewed anywhere — it is a database-level save only. Therefore, save a return only when it is the final version for the given month, and we also recommend saving a PDF copy of the return to your computer for future reference.
Creating an additional tax return
As mentioned above, in order to create an additional tax return, you must first save the standard return as described in the previous section. You then create the return in the same way as the standard return — via Accounting - Accounting Outputs - VAT Return — select the period, and on the next tab select Additional or Additional Corrective Tax Return:
Select the date of the standard return from the drop-down list and enter the date on which the changes were identified.
From this point, the process is the same as described in the previous section.
Creating a VAT control statement
The VAT control statement is created via Accounting - Accounting Outputs - VAT Control Statement.
The control statement creation wizard will open, where you select the period for which the control statement is being submitted.
After clicking the Next button, select the type of control statement:
Select the corrective option only if you are submitting a corrective return within the deadline for filing the standard control statement. Beyond that deadline, it must be filed as a subsequent control statement.
Click the Finish button. If there are any documents that do not have a control statement line filled in, the system will alert you as follows:
If you select Yes, only the documents that are missing the control statement line will be displayed, and you can correct them directly from this menu using the Open Document button.
If you choose not to display those documents, all documents currently included in the control statement will be shown:
Using the "yellow printer" icon, you can view the output in various report layouts in PDF format:
The XML file for the control statement is generated using the "VAT Control Statement XML" button at the top:
Creating a subsequent/corrective control statement and a quick response to a notice
A subsequent/corrective control statement is compiled in a similar way, but unlike the VAT return, the complete control statement is submitted — not just the changes compared to the original.
A subsequent control statement can again be created via Accounting - Accounting Outputs - VAT Control Statement.
On the second tab, however, select Subsequent or Subsequent/Corrective Control Statement. If you are simply confirming the accuracy of the originally submitted control statement, or if you have no obligation to submit a control statement, you can use the quick response to a notice option, where you fill in the reason for the quick response and the reference number of the notice in the required format:
If the notice reference number does not meet the required format, Flexi will not allow you to proceed with creating the control statement:
Add leading zeros before the first slash so that the total number of digits is 8. This will ensure the required format is met and you can continue creating the subsequent control statement.
A control statement will then be displayed that is empty:
Don't be alarmed — this is correct. The quick response is only used when you have no obligation to submit a control statement or when you are confirming the accuracy of the original one, so no documents are included. Simply click the "VAT Control Statement XML" button at the top and submit this "empty" control statement.
FAQ
Does the reduction coefficient also apply to self-employed individuals (sole traders) who use purchased assets or services for both business and private purposes?
NO – for a sole trader who uses assets for private purposes as well, a proportional deduction applies, not the reduction coefficient.
Can I view previously created VAT returns and control statements in Flexi?
No. All created documents must be saved — either as PDF or XML — to your computer's hard drive. Flexi does not maintain a list of created documents and submissions.
Is it possible to lock a specific tax period after submitting the VAT return and control statement?
No, it is not possible to lock a specific tax period. We recommend locking the individual documents that were included in the return and then locking the accounting period.
Can I submit the VAT return and control statement directly from Flexi via a data mailbox or the EPO tax portal?
No. In Flexi, you need to generate the files in XML format, save them to your computer, and then upload them to your data mailbox or the EPO portal. Flexi does not support direct integration with these services.