In this article we'll go through how to pay VAT from your Holvi account.
Table of contents:
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.
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.