What Is Automated VAT Forecasting Without Credit Refund?
When your company pays VAT to the State without expecting credit refunds, you can use Agicap's automated VAT forecast feature without credit refund. This means any VAT credit (when deductible VAT exceeds collected VAT) will be carried forward to offset future VAT payments, rather than refunded by the State.
Step 1: Contact Agicap's chat support for activation or activate the feature in your advanced settings
To enable this VAT forecast, you can either contact our chat support or activate it yourself in the advanced settings (only possible if you are the organization admin)
Go to your Advanced Settings.
Navigate to the VAT Options section.
Choose between No Credit Refund or Credit Refund, depending on your business needs.
Save your settings.
Step 2: Configure VAT Settings in the App
After enabling the feature, configure your VAT settings in the app:
Go to your Cashflow Plan.
Go on the three lines in the top right corner and on settings.
Go to the VAT tab and in the VAT settings, adjust the following:
VAT Payment Frequency: Choose how often your company pays VAT to the State (e.g., monthly, quarterly).
VAT Due Date: Set the specific day when your VAT payment is due.
Extend VAT Payment Term (German specificity): companies can ask for a delay in payment, this is called Dauerfristverlängerung. When enabled, the following will happen: Monthly frequency: your company pays on month M the VAT balance based on transactions of month M-2. Quarterly frequency: on the second month of the quarter, your company pays the VAT balance based on transactions of the last quarter
VAT Credit: if your company has some VAT credit available on a given offset, you can enter this info here by telling us that on month X, the VAT credit was of a certain amount.
Step 3: Review VAT Calculation Details
To ensure your VAT forecasts are accurate:
In the Cashflow Plan, click on the VAT cash outflow cell.
In the side panel under Forecast, view the details of the VAT calculations.
If needed, click on the arrow to open VAT forecast details
💡 Tips
Ensure VAT Rates Are Correct: Make sure you've correctly defined VAT rates on your categories, especially those with forecasts.
Reset VAT Credit: If there's a significant discrepancy, reset the VAT credit to zero for the current period from Advanced VAT Management in the advanced settings.
Refresh Computation: If calculations seem off, try refreshing the computation from the button in the Cashflow Plan page.
Consistent Forecast Input Level: The forecast input level should always match the VAT category level. If you move a VAT category within the category tree, adjust the input level accordingly.
Know Your Payment Days: Customize your VAT due date to match your local regulations and company practices. For example, payment days may vary by country:
Germany: Between the 10th and 24th
France: Between the 15th and 24th
Spain, Netherlands, Italy: Between the 1st and 28th
Q&A ❓
What if I have a VAT credit and want it refunded by the State?
If your company expects VAT credits to be refunded, you should select the option Use VAT automated forecast with credit refund instead. This will adjust your forecasts to account for incoming VAT refunds. To change this setting, contact your account manager or the chat support.
Can I set different VAT due dates for different entities?
Yes, you can customize VAT settings per entity to match local regulations and practices. Adjust the VAT payment frequency, due date, payment term, and refund term for each entity as needed.
Why can't I activate VAT with credit refund when my forecast is set per bank account?
Currently, VAT with credit refund cannot be activated when the forecast is set per bank account. You may need to adjust your forecast input settings to enable this feature.