When you register your business as VAT-liable, Holvi helps you stay on top of your taxes by giving you a real-time overview of your VAT balance. This ensures you always know how much money to set aside.
Is your business VAT-liable?
If your business is VAT-liable and you haven’t set this up in Holvi yet, follow the instructions behind this link to start simplifying your VAT payments.
How Holvi calculates your VAT
Whenever money moves through your Holvi account - whether it’s income or an expense - Holvi prompts you to assign a VAT percentage. Based on the transaction type, the system automatically allocates that percentage to a VAT Payable or VAT Receivable category.
1. Adding VAT to income (Inbound payments)
To add VAT to a payment you’ve received:
- Select the transaction and click Edit.
- Enter the VAT percentage for the item(s).
- Holvi automatically categorizes this amount as VAT Payable, and your VAT balance updates to reflect what you owe the tax office.
2. Adding VAT to expenses (Outbound payments)
To add VAT to a payment you’ve made:
- Open the transaction in the Holvi app.
- Snap a photo of the receipt and categorize the expense.
- Add the VAT percentage and any necessary notes.
Holvi automatically categorizes this amount as VAT Receivable, reducing your overall VAT liability.
How is the balance calculated?
Your VAT balance is simply the difference between what you owe (Payable) and what you can claim back (Receivable).
Example Calculation (25.5% VAT):
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Step 1: You sell a product for €1,000 + 25.5% VAT (€255).
- VAT Payable: €255
- Net VAT Balance: -€255 (Amount you owe).
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Step 2: You pay a business expense of €100 + 25.5% VAT (€25.50).
- VAT Receivable: €25.50
- New Net VAT Balance: €255 - €25.50 = -€229.50
You can view your real-time Net VAT balance on the Holvi home screen at any time.
💡 Pro tip – For accurate calculations
For an accurate estimation and proper accounting, make sure to add all your business transactions to Holvi, along with their corresponding VAT.