You can perfectly do the vAT declaration yourself, but watch out for common mistakes! Dexxter reduces the chance of mistakes, but mistakes can always creep in.
Fortunately, these mistakes are easy to avoid; below we give you the top 5 most common mistakes in vAT declarations:
1) VAT recovered on taxes & miscellaneous contributions
Think of social security contributions, provincial tax, municipal tax, etc. VAT will never be charged here and, of course, this is why you will not be able to reclaim VAT on these expenses.
2) Reclaiming foreign vAT paid in Belgium
Have you received an invoice from a foreign supplier on which (foreign) VAT was charged? You cannot reclaim this foreign VAT in Belgium!
For a small amount of foreign VAT, you can go for an easy solution. You simply enter the foreign vAT paid as an expense, together with the rest of the invoices.
Is the amount of foreign VAT somewhat larger? Then we give you the tip to question your foreign supplier for a new invoice that charges 0% VAT (reverse charge).
Tip:
Discover how to easily okay that in Dexxter via this video. Dexxter also gives you an automatic alert with extra information if you are entering an invoice with foreign vAT incorrectly, no worries!
3) VAT recovered on a restaurant receipt
A classic! You’ve had a business lunch, paid nicely, received the restaurant receipt and now recover vAT, right? Because that restaurant receipt also states ‘VAT receipt’.
Unfortunately, you may never recover VAT on a restaurant ticket, the taxman does not accept the VAT deduction. Despite mentions like: vAT receipt or VAT cash ticket. A mistake is easily made, fortunately Dexxter will automatically suggest 0% vAT % when entering a restaurant cost!
View how we book a restaurant cost in Dexxter here .
4) VAT recovered on tickets or receipts
Slightly broader than the restaurant ticket, in general, you may never recover VAT on any ticket, receipt, proof of payment, etc. At a minimum, you must always have an invoice to recover the vAT.
What do you do with non-deductible VAT for your vAT declaration? Easy, because that vAT goes along with your cost just like the rest of the ticket, receipt, proof of payment etc.
Tip:
Would you like some examples of costs and when you can recover vAT? Take a look at our blog post on deductible expenses for your accounts.
5) Booking VAT on insurance
Insurance is never subject to VAT, so you will never be able to recover VAT on it. Sometimes various taxes are charged on insurance, but pay attention, that is not VAT! No VAT is charged and you will therefore not be able to recover VAT on it.
No mistakes in Dexxter, because all our cost categories related to insurance are automatically presented with 0% VAT recovery.
In doubt about your vAT declaration?
Check the invoice or ticket you are entering good. Follow the steps in Dexxter well and if a suggestion comes up while booking, be sure to read it. Accounting for your sole proprietors is not that difficult, you will definitely be successful! By the way, filing a vAT declaration in Dexxter only takes 1 to 3 minutes.
Tip:
Still getting stuck? Take a look at our extensive learning centre or take a pulse in the community with your fellow entrepreneurs.
