If you use the invoice system (B2B), it is smart to move your sales invoice to the new quarter at the end of the quarter. Smart invoicing prevents you from having to pre-finance VAT. This prevents you from having to pay VAT while you still have to wait for your customer to pay. Be smart with your invoices and thus your liquidity. To calculate sales tax the tax calculator offers the best option now.
Use the correct VAT code
Many freelancers use online tools. Think of MailChimp, Google Apps for Business, AdWords, Trello, etc. Use the correct VAT code for these costs.
- For example ‘Acquisition within the EU 21%’ or ‘Acquisition outside the EU 21%’. Do not book these costs only under the heading ‘5b Pre-tax’.
Typical errors in the VAT declaration
Are you curious about the typical errors in the VAT declaration? We list the most common one’s for you:
Lost login details
We regularly hear ‘Where did we get that letter with login codes again? It is too bad if you have to jump through all kinds of hoops at the last minute to submit your VAT return on time. Requesting new login details takes +/- two weeks.
Focus on payment moment
The moment of payment of the VAT is not leading. The Tax and Customs Administration does not look at the time of payment. For the Tax Authorities, the only thing that counts is: is it on time in the bank account? So take into account weekends, holidays and the processing time that your bank needs.
Wrong settlement of irrecoverable invoices
Sometimes it happens that your customer goes bankrupt. You are then left with an unpaid invoice. We regularly hear that freelancers credit such invoices and thus ensure that they do not have to pay the VAT of the irrecoverable invoice. This is not allowed, you must reclaim the VAT of bad debts by means of a special request and therefore not set off in your VAT return. You can use the sales tax calculator for the best result.
Failure to meet invoice requirements
Check whether your incoming invoices meet the invoice requirements of the tax authorities. Only if the invoice meets the invoice requirements, the VAT on the invoice is eligible for deduction or input tax. Be alert to this and check your purchase invoices carefully.
Tax rate split
It often happens that you have different VAT rates on one invoice. For example, an invoice with 21% for office supplies and 9% for food and drinks. Split the amounts correctly. So do not accidentally and wrongly claim 21% on the entire invoice amount.
Most self-employed persons report every quarter. For example, you do a VAT return for January, February and March. Your VAT return must be submitted by the end of April at the latest. Do not accidentally include the month of April in your VAT return, as this month is part of the next (second) quarter.