To report the sales tax to the tax authorities, you calculate how much VAT you have to pay or get back. After all, that is what the VAT declaration is all about. Tips for calculating the VAT amount.
The administration shows how much VAT you receive or have received from your customers and how much VAT you have paid to suppliers. The difference between them is what you have to pay or get back from the tax authorities. The VAT declaration is that simple. But how exactly do you calculate that? An overview:
Choose your calculation method
First, determine whether you have to work according to the cash system or invoice system. That mainly depends on whether you mainly deliver to private individuals (cash system) or entrepreneurs (invoice system). In the cash system you take the VAT that was actually paid in the relevant period. While in the invoice system you calculate the VAT receipts of the invoices you have sent in that period, regardless of whether they have already been paid. For the private contractor taxes you need the experts.
Determine what you have to pay VAT on
In principle, you state all VAT that you have passed on to your customer, i.e. your turnover. The easiest way to do that is to check your cash book and sales book . There are a number of aspects that you need to pay extra attention to when passing on the VAT to the tax authorities. For example, a number of things are exempt from VAT:
Exempt from VAT: Is your industry or business activity exempt from VAT ? This means that you do not pass on VAT to your customers and so you do not have to pay VAT to the tax authorities.
Transfer scheme: Does your customer pay VAT directly to the tax authorities? In that case, the so-called reverse charge mechanism applies, whereby the VAT is transferred from the supplier (you as an entrepreneur) to the customer.
Tipping: Tips received by staff do not require VAT. Tips that you receive as an entrepreneur are also exempt from the VAT return, provided you work in an industry where tips are customary.
A number of matters require special attention because, depending on the situation, you may or may not have to pay VAT:
Extra fees that are paid on top of the bill: All extra fees that do not fall under the heading of tip, must be stated in the VAT return. You simply pay the standard VAT that applies to the entire amount (so 6 or 21 percent).
Theft: Have items been stolen in your company? In that case, you may deduct the VAT on the purchase price. You do not have to pay VAT on the stolen goods, because you have not sold them. An exception is when a hold has been made in the cash register. VAT must be paid on stolen cash. After all, it concerns realized turnover on which the customer has already paid VAT.
Business with abroad: Do you do business with abroad? Whether you deliver to or buy from abroad, in both cases you may have to pay or receive VAT on this. Check with the tax authorities whether this is the case in your case.