Understanding VAT Calculations in Agicap
Agicap's automated VAT calculations consider both paid transactions and forecasted amounts to provide a comprehensive VAT forecast. By correctly setting up VAT rates on your categories, you can ensure precise VAT estimations for your business.
Setting Up VAT Rates on Categories
To enable automated VAT calculations:
Assign VAT rates to the lowest-level categories in your category tree where transactions are categorized and forecasts are defined.
Ensure that all relevant categories have a defined VAT rate; otherwise, VAT will not be calculated for those categories.
How to Refresh Your Calculations
To update your VAT calculations:
Navigate to the CashFlow Plan page.
Click on Refresh computation (forecast + KPI).
Repeat this process for all scenarios/projects to fully update your cash flow plan.
Reproducing the VAT Calculation Step by Step
Step 1️⃣ – Considering VAT on Paid and Expected Transactions
For each tax period (monthly or quarterly):
Calculate VAT for categories with a defined VAT rate.
Use the formula:
VAT = (Paid Transactions + Expected Transactions) * VAT Rate / (1 + VAT Rate)
Note: Categories without a VAT rate are excluded from calculations.
Step 2️⃣ – Considering VAT on Gaps to Forecast
For the same tax period:
Identify the gap to forecast for categories with a defined VAT rate.
Calculate VAT on the gap using:
VAT = Gap to Forecast * VAT Rate / (1 + VAT Rate)
Important: Ignore gaps to forecast in past tax periods, as they no longer impact future VAT estimations.
Step 3️⃣ – Summing Deductible and Collected VAT
Collected VAT: Sum VAT from all inflow categories.
Deductible VAT: Sum VAT from all outflow categories.
Step 4️⃣ – Computing Overall VAT Estimation
Calculate the net VAT forecast for the tax period:
VAT Forecast = Collected VAT – Deductible VAT
Step 5️⃣ – Applying the VAT Forecast
If VAT Forecast > 0:
The amount is scheduled for payment on the date specified in your VAT Payment Term settings.
The forecast appears in the "VAT payment" outflow category.
If VAT Forecast < 0:
The amount is scheduled for refund on the date specified in your VAT Refund Term settings.
The forecast appears in the "VAT refund" inflow category.
Best Practices for Accurate VAT Forecasts
Consistently define VAT rates on all relevant categories.
Regularly refresh calculations after updating forecasts or transactions.
Ensure the forecast input level matches the VAT category level in your category tree.
💡 Tips
Refresh your calculations frequently to keep your VAT forecasts up to date.
If you notice discrepancies, verify that all categories have the correct VAT rates assigned.
Remember that past gaps to forecast are excluded from VAT calculations.
Q&A ❓
What if I disagree with the VAT calculations in Agicap?
If you believe there's an error in the VAT calculations:
Refresh the computation by clicking on Refresh computation (forecast + KPI).
Verify VAT rates are correctly assigned to all categories with transactions or forecasts.
Check the VAT credit reset in the Advanced Settings if using the VAT automated forecast with no credit refund option.
Review the steps above to ensure all data is correctly inputted.
By automating your VAT calculations in Agicap CashFlow, you can maintain accurate cash flow forecasts and stay on top of your VAT obligations with ease. ✅