Purpose and creation of a geographical zone

Related module:

In this article:

• Purpose of geographical zones
  • VAT recovery
  • Reimbursement caps
  • A geographical zone, a country
• Create a geographical zone
• Add rates

Purpose of geographical zones

Geographical zones have several uses.

VAT recovery

When recovering VAT on certain expenses, they are used to define the VAT types available when entering expenses. For example, if you want to recover VAT on certain expenses incurred in France but do not recover it for expenses incurred in other countries, you will need to create two distinct geographical zones:

• The 'France' zone containing the VAT rates that can appear on receipts: 5.5%, 10%, 20% and possibly 2.1%
• The 'Other countries' zone containing no VAT rates

These zones will then be available in the expense type settings (TVA section) in order to define the authorized rates and the % of recoverable VAT.

Reimbursement caps

Geographical zones are used when expense reimbursement caps are defined based on expense locations. For example, if meal expenses in the cities of Paris, Lyon and Marseille can go up to €20 while the same expenses in other cities are limited to €18, two distinct geographical zones should be created:

• The 'Paris, Lyon, Marseille' zone
• The 'Other cities in France' zone

These zones will then be available in the expense type settings (Remboursement section) and in the grouping settings (Plafond commun section), in order to associate a cap with a zone.

A geographical zone, a country

A geographical zone can be a country, but it can also be broader or narrower than a country:

• The zone can be a country (for example, France)
• The zone can combine several countries (for example, Europe)
• The zone can be part of a country (for example, Île de France)

Create a geographical zone

Access: New Admin Area > Expense Reports > Zones TVA

• Click on the 'Ajouter' button

• Enter the name
• Enter the country (if the zone is a country or a region of a country, otherwise leave empty): this allows you to benefit from automatic updates of French VAT rates by Eurécia
• Check 'Zone par défaut' so that the zone in question is suggested first when setting up the various associated VATs in the expense type settings.

Add rates

Access: New Admin Area > Expense Reports > Ouvrir Zones TVA

• Open an existing zone or create a new one
• Click on 'Ajouter un taux' to add a VAT rate

• Enter the VAT rate description, for example 'Taux normal' (prefer a fixed description rather than the current rate, as rates are subject to change)

• Enter the current rate value, for example 21 for a 21% rate
• Enter the start and end dates: they can be left empty if not known
• Enter the VAT account: it will be used for accounting exports
• Save

Keywords: Geographical zones · VAT · VAT rate · zones · expense reports · reimbursement · business expenses · professional expenses · rate value