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Investment from €250 / business asset (vAT legislation) from €1000

PV
15/07/2024
Question

If you have purchased something that has a certain value (indication: £250 or more) and lasts longer than a year, we refer to this as an investment, which must therefore be depreciated.In vAT legislation, we do not refer to an investment but to a business asset. Since 1 January 2014, the threshold for a business asset has been increased from £250 to £1,000.This means that an investment between €250 and €1,000 is activated in the balance sheet, but according to vAT legislation still belongs to services and miscellaneous goods (costs, box 82) and not to business assets (box 83).
How can you enter an investment between £250 and £1,000 in Dexxter? If you enter it as an investment – which is correct from an accounting point of view – it will also appear under business assets (investment) in the vAT declaration.

Hello,

This happens in Dexxter automatically! You can enter something as an investment (accounting), which means you will depreciate that purchase value. But if that purchase is less than €1,000 excluding VAT, you will notice that it ends up in grid 82 (expenses) in your vAT declaration and not in box 83 (investments).

So it is an investment for your accounts (i.e. depreciation), but not an investment in your vAT declaration. This is how it should/may be done, as it is to the advantage of the entrepreneur, so we apply this automatically in Dexxter.

Feel free to search for 'schedule 83' in the learning center.

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You really should try it out for yourself. Even if you don’t have a company number yet, you can already go ahead.

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