Important rules regarding VAT returns

Filing your VAT return can be quite complicated when you first start out. There are a number of things you need to keep in mind when filing a VAT return.

These are the most important ones:

1. The invoice date is decisive for the VAT return
2. Make sure that you submit and pay your VAT return on time
3. Don't forget to include the deferred VAT (foreign invoices)
4. Take into account the small business scheme
5. Please note that you cannot deduct VAT from all business meals.

1. The invoice date is decisive for the VAT return

For VAT returns, you must use the invoice date as your basis. This means that you must include all invoices within a certain period (month, quarter, year) in your VAT return.

Looking at it the other ay around, you may not use the payment date or shipping date. Doing so could cause problems during an inspection done by the Belastingdienst. There are a few exceptions to this rule. If you would like to know more about this, we recommend contacting the Tax and Customs Administration or an accountant. 

2. Make sure that you submit and pay your VAT return on time

When you file your return too late or pay too late, you may be fined. So make sure you start on time and keep track of all your income.

These are the deadlines for VAT returns:

• Quarter 1: January to March: 30 April
• Quarter 2: April t/m June: 31 July
• Quarter 3: July t/m September: 31 October
• Quarter 4: October t/m December: 31 January

The deadline is, as shown above, the last day of the first month of the new quarter. A handy feature of Gekko is that we automatically send you a reminder.

3. Don't forget to include the deferred VAT (foreign invoices)

Do you have receipts or invoices where the VAT has been deferred to your company? In that case, the invoice will usually not show any VAT. However, you are still required to declare this. You can deduct this as input tax. On balance, you will not have to pay anything. However, you are required to declare this in your VAT return.

 4. Take into account the small business scheme

Have you just started as a self-employed person? At the beginning, you usually don't earn that much. Fortunately, there is a very nice scheme for entrepreneurs who don't earn as much money yet: the small business scheme.

With the small business scheme, you may be eligible for a tax reduction. If your total VAT in a year is less than €1,883, you don't have to pay any VAT at all.

Please note: this scheme will change on January 1, 2020. Instead of tax relief, you may be entitled to VAT exemption if your turnover remains below €20,000.

 5. Please note that you cannot deduct VAT from all business meals

When going out for lunch or dinner with a business associate or your colleagues, pay close attention to how you process these receipts in your administration. You are not allowed to deduct VAT if:

• food and drink are consumed in a catering establishment
• a caterer provides food and drinks in a space specially designed for this purpose (e.g., a party tent or a rented space)