1. VAT activation
If you have not activated your VAT support in your account and you are VAT liable, please let us know and we can activate it for you. Please send us the relevant VAT number that you would like to register in your request.
NB! Starting from 29.4.2019 you can activate the VAT support yourself, in case you have the new dashboard (beta) version in use. Just add your VAT identification number (VAT ID) in the home view, under your account details.
Want to activate the Holvi Labs new dashboard (beta)? Please see the instructions here.
2. VAT Payable and VAT Receivable categories
Holvi's VAT support includes calculating VAT % in all Holvi transactions.
Holvi calculates VAT in both sides of the Holvi account: Income and Expense, and creates automatically VAT income and expense categories, the VAT payable and VAT receivables category. From these categories you can easily see the state of your overall VAT receivables and payables.
You can find VAT payable and VAT receivables categories under the Bookkeeping tab in your Holvi account after receiving and sending payments with a VAT %.
You can set VAT support either when creating a new Holvi account or have it added to an existing account by contacting email@example.com.
3. VAT on inbound payments
If you want to add VAT to an inbound payment, you can do so by selecting the payment you received and clicking on edit Edit. There you can then add VAT for each item.
4. The VAT report
On the reports side Holvi compiles monthly VAT reports that you can use for bookkeeping and possible reports. You can find the VAT report by choosing the Bookkeeping tab in Holvi, then click reports, choose bookkeeping reports and VAT report.
5. How does Holvi calculate VAT balances
You sell a 1000€ product with VAT 24% and full price 1240€ -> VAT payable is updated to 240€ and VAT receivable stays at 0€.
After this you pay a 100€ invoice with VAT 24% and full price 124€ -> VAT payable decreases by 24€ and becomes 216€ and VAT receivable is still 0€ (because there are no receivables)
You can check your VAT payable and receivable, from the 2nd and 3rd pages of your VAT reports. You can find a link to the VAT reports from the VAT categories.
6. Paying VAT from Holvi in general
If your account is VAT liable and you have received payments that have a VAT rate assigned to them you will see a VAT payable expense category in the bookkeeping view. This category calculates the amount of VAT you need to pay based on your income. Making VAT payments out of Holvi decreases the amount registered into the VAT payable category.
7. How to pay VAT from Holvi
You have a couple of choices in paying VAT from Holvi. You can either 1. Pay the VAT directly to your tax account or 2. Pay the VAT to your separate bank account and move the money to the tax account from there.
Here's how you do it in practice:
1. Paying VAT directly from Holvi to tax account
- Create a new payment out by choosing the Payments tab in your Holvi account and then click New Payment
- Fill in the subject field (only for you own monitoring) and choose the expense category to be VAT Payable
- Put in your tax account IBAN number as the receiving bank account
- Sum: Put here the amount of VAT you want to pay. You can look at your VAT Payable expense category to see how much VAT you currently have to pay. If you define the sum to be equal to the amount you have as VAT Payable the category sum will drop to 0,00€.
- The sum can also be only a part of the VAT you have to pay but remember that the same sum is deducted from your VAT Payable category
- Remember to include a reference number (if you have it) or alternatively a message with your VAT registry ID or your business ID and the dates from which you are paying VAT
- You can find more information considering your account's VAT situation in your VAT report.
2. Paying VAT from Holvi to an external bank account
- Everything else works similarly as above but put in your own bank account number as the receiving bank account.
The important thing to remember when you are paying VAT is to always mark the payment into the expense category VAT Payable, otherwise the reporting might not be accurate. Also it's good to note that you shouldn't use this category with any other payments than VAT payments.