How to apply a VAT exemption to products

Apply a VAT exemption in Moloni ON, either on the product record or directly on a document, with the exemption reason required by the Tax Authority (AT).

In Moloni ON you can apply a VAT exemption in two ways: on the product record, in the Tax tab, where you remove the associated tax and choose the exemption reason; or directly on a document, under Product options, by enabling the exemption and entering the reason. That reason is what justifies the exemption to the Tax Authority (AT).

The application of a VAT exemption can be done in two ways:

  • By selecting this option when you create a product — the exemption is stored on the product record and applied to every document where you use it;
  • By selecting this option when you create a document — the exemption applies only to the lines of that document.

When creating a product

Follow the steps:

1. When creating a product, click the Tax tab.

Product creation form in Moloni ON with the Tax tab highlighted

If there is a tax associated with the product, remove it.

Tax tab of the Moloni ON product form with the option to remove the associated tax highlighted

2. Select the product's exemption reason.

Exemption reason field highlighted on the Moloni ON product form

3. Click the Save button.

Save button highlighted on the Moloni ON product form

When creating a document

Follow the steps:

1. Add the products and/or services to the document and select the product line you want to apply the VAT exemption to.

Product line selected on a document being created in Moloni ON

2. Click Product options.

Product options button highlighted on a document line in Moloni ON

3. Tick the tax checkbox.

Tax checkbox ticked in the product options of a Moloni ON document

4. Enter the exemption reason.

Exemption reason field filled in the product options of a Moloni ON document

5. Click the Apply button.

Apply button highlighted in the product options of a Moloni ON document