1. VAT activation
If you have not activated your VAT support in your account, please let us know and we can activate it for you.
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 firstname.lastname@example.org.
3. 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.
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 your Holvi, then click reports , choose bookkeeping reports and VAT report.
5. Exceptions - assigning VAT into bank transfers
If you receive an uncategorised bank transfer (such as iZettle or SumUp payment) to Holvi that does not have a VAT rate you may do the following:
1. Create a new invoice in your Holvi account - receiver should be your own business
2. Specify the invoice rows - we recommend to define each VAT rate into their owns. Here is an example
- Row 1 - VAT 24% X€ -> pick up VAT 24% for this row from the dropdown selector
- Row 2 - VAT 10% X€ -> pick up VAT 10% for this row from the dropdown selector
- and so forth
3. Save the invoice
4. Do not send the invoice but mark it as sent
5. Now you may match the received bank transfer from your uncategorised payments into this invoice. To do this, click Mark as paid in the invoice.
Please note: with this workaround you will be "sending" more invoices than normally and also invoice yourself so please assess the need for this with your bookkeeper.
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.