In this article we'll go through Holvi's VAT support.
Table of contents:
Note: if you have not activated your VAT support in your account, please let us know and we can do the activation by hand.
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.
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.
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.
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.