As an entrepreneur / business owner you have to file a VAT return every month, quarter or year. Usually you file the VAT return quarterly (every 3 months).
When you keep an accurate and up-to-date administration the VAT return isn't particularly hard for most businesses. But due to the frequency of the VAT return forgetting to file it or procrastination on preparing it might lead to (costly) errors.
If you calculate the time you spend on the VAT return each quarter, you understand why our bookkeeping and tax clients are happy their returns are handled for them, and they barely have to think about them.
The VAT return is one of those really nice benefits of having us as your bookkeeper. You can do it yourself, search for every receipt and check if you have everything that is on your bank account. Or you just enjoy your work and let us handle it for you.
The VAT returns are included in your bookkeeping subscription. Since you are using the digital bookkeeping system your bank account is connected, you simply uploaded your receipts and created your invoices with the same system. When it's time for the VAT return we will send you a reminder to make sure everything is uploaded. We will check if you aren't missing any receipts, prepare and file your VAT declaration - making sure every tax deduction is utilized.
You then just wait for the VAT declaration and pay the tax authorities before the due date. That's how easy it can be.
Value added tax is a part of everyday life without even thinking about it. Everything that is bought, sold or provided has a value added in its production chain - and thus tax on the added value.
To understand the concept of value added tax, we can look more closely at the term 'value added' itself. It is a tax that is imposed on the value added to a product or service. Which makes understanding the concept a bit easier. Price of product sold, minus price of production equals that 'added value'.
The VAT rate fluctuates. You can find a list of Dutch 'tax tariffs' here.
You can then deduce the tax you already paid to create the product. Since the VAT on "things" you bought in order to create the service or product are added to the end price. Think of things like gas, marketing, office supplies, computers, printer inkt or raw materials. You needed that in order to sell the 'new product or service'.
VAT isn't always as straightforward as receipts and invoices. Once you start dealing with buying and selling products abroad or i.e. intra-Community A-B-C constructions (A ships to C but sells to B while B sells to C) VAT declaration gets an additional level of difficulty.
When you have questions concerning your VAT declaration feel free to contact us for assistance.
Planning a perfect start and have us handle your bookkeeping and taxes right from the beginning? Already a seasoned entrepreneur and done with preparing your own taxes? Or has to VAT return become to complicated to do it yourself?
Tax advice is what we do best, we are happy to help.