Value-added tax, or VAT, is a sales tax levied by the government on the sale of goods and services. Every entrepreneur must charge this tax to customers, collect it and remit it to the tax authorities.
Registering and remitting VAT
To remit VAT correctly, entrepreneurs must first register with the Chamber of Commerce (CoC) and the tax authorities. It is then important to keep accurate records of all sales, including the VAT levied. This information is submitted to the tax authorities periodically (monthly, quarterly or annually) via a VAT return.
Why VAT records?
VAT accounting provides clarity and transparency about a company’s financial activities. It ensures that companies pay all taxes due correctly and on time and that we correctly recover claims against the tax authorities, such as input tax. Moreover, accurate VAT records can help identify cost-saving opportunities and optimise business processes.
Tax authorities set obligations
The tax authorities impose various obligations on companies and entrepreneurs regarding Value Added Tax. For example, records must always be up-to-date and correct, and all invoices and receipts mentioning VAT must be kept. This requires accuracy and consistency in keeping track of all financial transactions. On its website, the tax authority stresses that entrepreneurs themselves are responsible for calculating and remitting the VAT due correctly.
What can TriFact365 do in this regard?
TriFact365 simplifies the VAT declaration process through automatic and accurate invoice and VAT recognition. By efficiently processing invoices, TriFact365 minimises errors and saves time. Companies are thus prepared for their VAT returns.