NOTE! The possibility of VAT relief for small businesses has been completely abolished as of 2025. The last time VAT relief for small businesses could be applied for was for the year 2024.
Small businesses by turnover may receive a full or partial relief on their payable VAT — this is known as VAT relief for small businesses. You can read more about calculating and reporting VAT relief for small businesses on our blog and on the Finnish Tax Administration’s website.
If you are still applying for VAT relief for small businesses for the year 2024, this guide explains how to record the VAT relief for small businesses in SimplBooks.
Create a new journal entry under Accounting > Journal Entries > New Entry. The date of the entry depends on whether you use accrual-based or cash-based accounting.
The tax authority will pay the relief to the bank account or use it to reduce the VAT payable.
When the refund arrives in the account or is offset against the VAT liability, make a second entry for the amount of the relief as follows:
- Debit: Bank Account or 2939 VAT Payable
- Credit: 1760 Other Current Receivables
If the VAT relief for small businesses is not paid to the bank account but is instead used to reduce the VAT payable, record the relief amount to account 2939 VAT Payable instead of the bank account.
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