Quick Start Manual

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Manual

Intro
BizFusion Trial
User Interface
Contacts Module
Products Module
Discount Rules
Inventory Module
Sales Module
Purchase Module
Bills & Receipts
Projects
Subscriptions
Credit note / Returns
VAT Module
VAT over margin
European Trade
Foreign Trade
VAT Shifted
US Sales Tax
VAT Correction
Manufacturing
Assets Module
Current Account
Accounting Basics 1
Accounting Basics 2
Accounting Advanced
Year End
Owner Equity
Income Tax
Banking Module
Payments
Loans
Financial Lease
Cross Payment
CSV Statement
Data Import
Data Export
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VAT Correction


What should you do when you discovered that you used the wrong VAT code on your invoice?
If you didn't already remit the VAT, then you can unpost/revise the invoice
and specify the correct VAT code.

But what if you already remitted the VAT?
If that's the case, then you need to create a journal voucher with a VAT correction.

IMPORTANT!
If you can still use unpost/revise to adjust the invoice, then you should always do that!
The corrections that we discuss here are much more elaborate.




Create VAT Corrections Account


You need to register the VAT correction on a separate ledger account.



Go to: 'Accounting > Account' and click on 'New Record'
Create a new account with name: 'VAT Correction'
The account is of type: 'Expenses'




Wrong VAT code on Sales Invoice


Assume that you're a Dutch entrepreneur and used 0% VAT on a sales invoice
instead of the regular 21% VAT.
You have higher revenue, because you didn't charge any VAT and you still need to remit the VAT.
We will assume that the amounts are VAT inclusive.

Step 1: Register correction amount
You first need to calculate what the correct VAT amount was.
Create a document where you specify how you calculated the VAT amount.
You will use the name of this document as a reference later on,
e.g. 'VAT Correction Sales Q3 2015'.

Step 2: Post journal voucher
Go to: 'Accounting > Journal Voucher' and click on 'New Record'.



Select your tax agency as the customer/supplier for the voucher.
In transaction type, specify: 'Expense'.
In reference, specify: 'VAT Correction Sales Q3 2015'.

Create a 'debit' line for account: 'VAT Correction'.
Create a 'credit' line for account: 'Creditor'.

Click on 'Save & Post'.

You can add a payment to the voucher after that.

Correction of Revenue
The wrong VAT code led to higher revenue then is actually the case,
but the entry for account 'VAT Correction' corrects that.




Wrong VAT code on Purchase Invoice


Assume that you're a Dutch entrepreneur and wrongly used 0% VAT instead of
the regular 21% VAT on a purchase invoice.
You didn't calculate VAT on the purchased goods, so the received goods have
a higher stock value.
This leads to a lower revenue amount when we sell the goods.
We will assume that the amounts are VAT inclusive.

Step 1: Register correction amount
Register in a document how you calculated the correction amount.
Give a descriptive name to the document, e.g: 'VAT Correction Purchases Q3 2015'.

Step 2: Register Journal Voucher
Go to: 'Accounting > Journal Voucher' and click on 'New Record'.

Select your tax agency as the customer/supplier for the voucher.
In reference, specify: 'VAT Correction Purchases Q3 2015'.

Create a 'debit' line for account: 'Debtor'.
Create a 'credit' line for account: 'VAT Correction'

Click on 'Save & Post'.

You can add a payment to the voucher after that.

Correction Future Revenue
Our purchased goods have a higher stock value, because we used the wrong VAT code
and this means that we make less profit when we sell these goods in the future.
This is corrected with the credit entry for account VAT Correction.




VAT Correction Form


You need to communicate the VAT correction to your tax agency.
Most tax agencies provide a form that you can download for VAT corrections.
Dutch entrepreneurs can download a VAT corrections form to specify their
corrections. You can find this form on the entrepreneur portal (login required)
of the Dutch tax agency.

Vorige

  

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