VAT Support

You can turn an expense/income account into a VAT category, which means that it receives all the splits that actually make up the VAT payment towards the government. The percentage rate can be entered.

Categories can be assigned a VAT category, which allows KMyMoney to split up a transaction for a category into two splits, one for the category and one for the VAT. Depending on the setting of the gross/net amount switch, the amount you enter for the transaction is the gross or net amount.

Example: In Germany, there are three VAT percentages (0, 7 and 19%). So I have a main category "VAT paid" and three subcategories, one for each percentage rate. Next I have this on the income and the expense side so a total of 8 categories. For the goods I buy, I select one of the above mentioned categories as the "VAT category assignment".

When I buy goods, I enter them into a transaction. Let"s assume I have selected the gross amount entry method, once I enter the category and amount, KMyMoney will recognize that there"s a VAT assignment and calculates the VAT part, creates a second split with the VAT account and VAT amount and reduces the category amount.

The same applies to income categories but the other way around. Hope that makes sense.