Understanding VAT in Agicap
In Agicap, VAT calculations help you anticipate both VAT payments and refunds based on your cash inflows and outflows.
VAT Basics
Collected VAT: VAT collected on sales (inflows) that is owed to the State.
Deductible VAT: VAT paid on purchases (outflows) that the State owes back to your company.
VAT Balance: The difference between collected VAT and deductible VAT:
VAT Balance = Collected VAT - Deductible VAT
If the balance is positive, you owe VAT to the State.
If the balance is negative, you have a VAT credit, and the State owes you.
Setting Up VAT Rates on Categories
To ensure accurate VAT calculations:
Assign VAT Rates: Go to each subcategory or main category where you have transactions (paid or expected) and forecasts, and assign the appropriate VAT rate.
Ensure Forecast Input Consistency: The forecast input level should be at the same level as where the VAT rate is defined.
Check Subcategories: If VAT rates are not set on subcategories, no VAT will be calculated for those categories.
Refreshing VAT Calculations
To update your VAT calculations:
Navigate to your Cashflow Plan.
Click on Refresh computation (forecast + KPI). ✔️
Repeat for all scenarios or projects to fully update your entity's cashflow plan.
How Agicap Calculates VAT with Credit Refunds
Agicap calculates VAT forecasts by considering your transactions and any VAT credits. Here's how:
Calculate VAT on Paid and Expected Transactions:
For each category with a defined VAT rate:
Formula:
(Paid Transactions + Expected Transactions) × VAT Rate / (1 + VAT Rate)
Categories without a VAT rate are excluded from the calculation.
Calculate VAT on Gaps to Forecast:
For categories where you input forecasts:
Formula:
(Gap to Forecast) × VAT Rate / (1 + VAT Rate)
The gap to forecast is only considered for the current or future tax periods.
Sum Deductible and Collected VAT:
Collected VAT: Summed from inflow categories.
Deductible VAT: Summed from outflow categories.
Compute the VAT Balance:
VAT Forecast = Collected VAT - Deductible VAT
Apply the VAT Forecast:
If the VAT Forecast > 0:
An outflow forecast is created in the "VAT payment" category.
If the VAT Forecast < 0:
An inflow forecast is created in the "VAT refund" category, representing the VAT credit refund.
Best Practices
Consistent VAT Rates: Ensure VAT rates are assigned to all categories where transactions occur and forecasts are made.
Match Input Levels: The forecast input level must match the level where the VAT rate is defined.
Regular Updates: Refresh calculations regularly to maintain accurate forecasts.
💡 Tips
Customize VAT Payment Dates: Adjust the VAT payment date in settings to align with local regulations and your company's practices.
Monitor Tax Periods: Be aware of your VAT reporting frequency (monthly or quarterly) to ensure accurate forecasting.
Review Calculations: Use the VAT calculation table in BO → Cashflow → VAT to verify and understand your VAT computations.
Q&A ❓
How Can I Verify the VAT Calculations in Agicap?
Refresh Calculations: Click on Refresh computation (forecast + KPI) to ensure all data is up to date.
Check VAT Rates: Confirm that VAT rates are correctly assigned to all relevant categories.
Review VAT Settings: Verify your VAT settings, including payment terms and frequencies.
Use the VAT Calculation Table: Access BO → Cashflow → VAT to see detailed calculations.
What Should I Do If I Disagree with the VAT Amounts Shown?
Reset VAT Credit: In Advanced Settings, reset the VAT credit to the current month if necessary.
Confirm Forecast Inputs: Ensure that your forecast inputs and VAT rates are properly aligned.
Reach Out for Support: If issues persist, consider contacting support for assistance.
Can I Use VAT with Credit Refunds if My Tax Period Is Quarterly?
Yes: Agicap supports VAT calculations for both monthly and quarterly tax periods. Ensure your settings reflect your reporting frequency.