Prevent errors in the VAT declaration? The declaration is probably not your hobby, but of course you want to do it well. With a little common sense and some good helplines, the VAT return can easily be done yourself.
Send your VAT return on time
The website of the Tax Authorities is sometimes inaccessible and that is of course annoying if you still have to submit your VAT return at the last minute. If you get VAT back from the tax authorities, you obviously have a good reason to be on time. You can calculate sales tax and have the best solutions now.
Schedule the VAT payment
Avoid forgetting to transfer the amount on time and therefore getting a fine from the tax authorities. The moment of receipt on the account of the Tax Authorities is leading, so plan your payment in advance via Internet Banking.
Check if you need to make any changes
It often happens that you find a receipt or purchase invoice that belongs to a previous VAT period. Check whether you have an amendment or a supplement from the previous period (quarter) and include this in your VAT return (note: your supplement may not exceed € 1,000).
Don’t forget the start-up costs
You have probably already incurred costs before you actually started your business. Think of the logo, the website, business cards, etc. If you can demonstrate that these costs are business, they are eligible for deduction, so as ‘input tax’. Don’t forget your private advanced costs!
Watch for bad debts
Check if you still have sales invoices that were irrecoverable. You may not settle this in your VAT return, but you can reclaim the VAT with a special request. So don’t leave it there, it takes some effort but a shame to pass it up.
Check the invoice requirements
You may VAT on incoming invoices only recover if the bill meets the invoice requirements. Check your incoming invoices and make sure that you are right to reclaim VAT. For sales tax calculation you need the best option now.
Check the Small Entrepreneurs Scheme
Do you have limited turnover? You may be able to make use of the KOR or Small Entrepreneurs Scheme and you may have to pay less or even no VAT at all.
Do you do business abroad? Convert the foreign currency to Euros correctly. Do not look at the rate on the day of entry in your administration, but at the rate that applied on the invoice date.
Use the correct system
If you mainly supply products or services to companies, you send invoices and you usually use the invoice system (B2B). In this situation, the date of the invoice determines the period in which you must declare the VAT. Do you deliver to private individuals? Then you usually use the cash system (B2C). In the cash system, the time of receipt of the payment determines the period in which you must declare the VAT.