Your VAT report page gives you a clear picture of your VAT balance. Here’s how it works.
When you set your business as VAT-liable, Holvi automatically calculates VAT on all transactions – both incoming and outgoing. We do this by creating 2 bookkeeping categories called VAT payable and VAT receivable.
This category shows your total VAT payable. Your VAT payables are made up of all inbound transactions containing VAT.
This category shows your total VAT receivables. Your VAT receivables are made up of all outbound transactions containing VAT.
Holvi is cash-based, so in your VAT categories you'll only see transactions that are complete.
Where to find your VAT balance
Log in at Holvi.com and go to Bookkeeping > VAT report to view a full breakdown of your VAT activity. Holvi lists:
- Sales transactions with VAT
- Purchase transactions with VAT
Holvi calculates your VAT balance (VAT payables / VAT receivables) based on the balance of these transaction lists.
Example of VAT balance calculations
You sell a product for €1,000 with 24% VAT for a total price of €1,240. Your VAT payable updates to €240 and your VAT receivable stays at €0.
Next, you pay a €100 invoice with 24% VAT for a total price of €124. Your VAT payable decreases by €24 to €216 and your VAT receivable remains €0.
You can download your VAT report from Holvi any time by logging in at Holvi.com and going to Bookkeeping > VAT report then selecting a date range and clicking Download. Your VAT report will show VAT payable and VAT receivable.