This article describes the needed changes regarding the VAT rate change in Travel & Expense Management (TEM) solution concerning VAT change in Finland 1.1.2025, how to implement these changes, and when and how to request assistance from Basware.

How to implement VAT rate changes in TEM

By following these instructions, you can complete the VAT change in Finland taking place at 1.1.2025, in your Basware Travel & Expense Management (TEM) solution.

The changes affect the following sections in TEM:

• Coding rules
• Coding rule rows
• Expenses
• Coding rule categories

Editing the above-mentioned basic data items requires the Main User access and the Basic data section can be found from the Admin client.

As Best Practice, create the changes first in the Test environment, test and after successful testing, create the changes in the Production environment.

Coding rule and coding rule rows for 10>14 change

1. Open the Admin client
2. Choose the Basic data menu
3. Open the Coding rules
4. Click new
5. Add the following information
   1. Coding Rule ID: Unique identifier of the new coding rule for changing VAT expenses
      Best Practice: 358214
   2. Name: The name of the Coding Rule, shown for example on expenses when coding rule rows are created
      Best Practice: 14% VAT 2025
   3. Choose coding rule category ALVB (VAT 10 %) (- this standard setting is not necessarily available, it could also be 8,9,10,110 or something else)
   4. Start date: 1.1.2025
6. Save
7. Choose the Basic data menu
8. Open the coding rule rows
9. Add search criteria coding rule id
10. Choose 17 (14 %) (this standard setting could also be 12,13,14 or something else) as search criteria
11. Search
    
    The search should return three coding rule rows
    
    
12. Take a screen capture of three rows in display
13. New (coding rule row)
14. Add the following information
    1. Coding Rule ID: Unique identifier of the new coding rule for changing VAT expenses
       Choose 358214
    2. All the other fields exactly the same as in screen capture 1st line (having ALVA as a VAT code - it could also be 22,23,24,255 or something else), note that VAT code category is only set on 1st, expense code line
    3. Save
    4. New
    5. Coding Rule ID: 358214
    6. All fields are similar as in screen capture 2nd line
    7. Save
    8. New
    9. Coding Rule ID: 358214
    10. All fields are similar as screen capture 3rd line
    11. Save
15. You can now check the three lines you created: Other than having a different Rule ID, they should be similar as in Coding rule 17 (or something else)
    
    After making these changes, the program now automatically chooses 14 % VAT base for all the expenses now on 10 %, dated on 1-Jan-2025 or later. However, it is recommended to use notation 10>14% in expense name

Expenses

1. Open the Expenses
2. Review the list of existing Expenses
3. Open each of the existing Expense, where the name has the previous VAT rate mentioned
4. Edit the following information:
   1. Name: The name of the Expense, visible to the end users, when selecting the Expense
      Best Practice: Change to be performed in two phases to account for the interim period where both tax codes are used:
      
      Phase 1: [Expense Name] 10% / 14% (Interim, ~month before the VAT rate change)
      Phase 2: [Expense Name]  14%  (Final, ~month after the VAT rate change), the coding rule category may also be changed to ALVA (or what is equivalent in your TEM solution)
5. Save

Coding rule category

1. Open the Coding rule categories
2. Open ALVB (8,9,10, etc.)
3. Name: Change this to VAT 10>14%
4. Save

Special issue: Newspapers and Magazines

The change includes, that Newspapers and Magazines remain in 10 % VAT code in Finland even after 1.1.2025. (This instruction may also concern other expenses, since 10 % code is not available for expenses after 1.1.2025)

Coding rule category

1. Open the Coding rule categories
2. New
3. Coding rule category id:
   Best practice: ALVC (if this category already exists, go to next part Coding rules)
4.  Name
   Best practice: 10 % VAT 2025
5. Save

Coding rule and coding rule rows

1. Open the Coding rules
2. Click new
3. Add the following information
   1. Coding Rule ID: Unique identifier of the new coding rule for changing VAT expenses
      Best Practice: 358210
   2. Name: The name of the Coding Rule, shown for example on expenses when coding rule rows are created
      Best Practice: 10% VAT 2025
   3. Choose coding rule category ALVC (VAT 10 %)
   4. Start date: The date when the VAT base is started to use., Note: this must be in use before the year change
      Best Practice: 1.1.2013
4. Save
5. Choose the Basic data menu
6. Open the coding rule rows
7. Add search criteria
8. Choose 8 (10 %) (-this standard setting could also be 9,10 or something else) as search criteria
9. Search
10. Take a screen capture of three rows in display
11. Choose 358210 (This is the coding rule that you created in step 3) as a coding rule
12. New (coding rule row)
13. Add the following information
    1. Coding Rule ID:
       358210
       All the other fields exactly the same as in screen capture 1st line (having ALVB as a VAT code - it could also be 22,23,24,255 or something else), note that VAT code category is only set on 1st, expense code line
    2. Save
    3. New
    4. Coding Rule ID:
       358210
    5. All fields are similar as in screen capture 2nd line
    6. Save
    7. New
    8. Coding Rule ID
       358210
    9. All fields are similar as screen capture 3rd line
    10.  Save

Expenses

1. Expenses
2. Open expense used to report Magazine and Newspapers costs
3. Edit
4. Coding rule category
   ALVC
5. Save

How and When to Request Assistance from Basware

The above guidance is a generic guidance based on Best Practice approaches, in case some information in your TEM configuration is significantly different compared to the above, we recommend that you to reach out to Basware Delivery Consulting to analyze and review the requirements.

You can reach out to Basware Delivery Consulting by Requesting a Service in the Customer Portal.