IMPORTANT INFORMATION: This information belongs to VAT liable companies registered outside of Finland or Germany.
1. How do I know if I am VAT liable?
Usually it is the supplier who is liable to pay any VAT due on a transaction however, this liablity may also fall to the customer. It is not only taxable persons (businesses) who may have to pay the tax (as in a reverse-charge supply or on an intra-EU acquisition) but also sometimes a non-taxable legal entity. VAT is payable by any taxable person making a taxable supply of goods/services, unless it is payable by another person.
Your VAT liability depends on the type of company you legally registered and your yearly turnover. Usually every business is VAT liable however, some types of freelancers and small businesses are also exempt from paying VAT. Please consult your tax advisor if you don’t know whether your business is VAT liable.
2. What is reverse VAT and which customers can charge reverse VAT?
If you are VAT liable, reverse VAT is how you must account for VAT on services that you buy from businesses that are based outside of your country. If you are not registered for VAT, the reverse charge will not apply to you.
3. What will change for me if my company is subject to VAT?
You will have to pay VAT on top of the service fees of your current pricing model.
4. What will change for me if my company is NOT subject to VAT?
If your company is NOT subject to VAT, you will be charged the country specific VAT rate.
5. I am VAT liable. How do I find out how much I owe in VAT each month?
To calculate your VAT tax liability for a particular month, simply log in to your Holvi account and click “Reports & Exports → Bookkeeping reports
6. I am VAT liable. How do I pay VAT to my local tax authorities?
You are responsible for calculating and paying your VAT to the tax authorities in your country. If you have any questions concerning this, please contact the tax authorities directly.
7. Can I deduct the VAT payable of the Holvi reverse charge invoice?
If you are a VAT registered company, you may deduct the VAT tax as a business expense. If you are NOT VAT liable, which means you are not a VAT registered company, you will not be able to deduct the extra amount.
8. I have received an invoice with a wrong VAT. What can I do?
Please inform our support team via email@example.com and we’ll send you a credit note and a new invoice with the local VAT %.
9. What do I need to do?
As a VAT liable business you get a reverse charge invoice, which only shows the net price of our services. The amount of VAT can be checked in your Holvi bookkeeping report. As a VAT liable customer you need to do your VAT reporting and the VAT can be deducted as any other business expense.
10. Why can’t Holvi help me with reversing VAT?
When you buy goods or services from suppliers in other EU countries, the Reverse Charge moves the responsibility for the recording of a VAT transaction from the seller to the buyer for that good or service. We’re not tax advisors, however we help you keep an overview of your VAT in our bookkeeping reports.