What Is Automated VAT Forecasting with Credit Refund?
When your company pays VAT to the State and the State refunds this money to your company, you can use Agicap's automated VAT forecast with credit refund. This means any VAT credit (when deductible VAT exceeds collected VAT) will be refunded by the State rather than carried forward to offset future VAT payments.
VAT Basics 💡
Collected VAT: VAT collected from your clients (inflows), which you owe to the state.
Deductible VAT: VAT paid to your suppliers (outflows), which the state owes back to you.
VAT Balance: Calculated as Collected VAT minus Deductible VAT.
If the balance is positive, you owe VAT to the state.
If the balance is negative, you have a VAT credit the state owes you.
Steps to Set Up Automated VAT Forecasts
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:
Hover the mouse on the VAT categories in the cashflow plan and click ⚙️ to access VAT setup
Set VAT Payment Frequency: Choose your VAT payment frequency (monthly or quarterly) based on your company's reporting requirements.
Define VAT Payment Date: Select the day of the month when VAT payments are made.
The eligible payment dates vary depending on your country's regulations:
France: Between the 15th and 24th
Germany: Between the 10th and 24th
Spain: Between the 1st and 28th
Netherlands: Between the 1st and 28th
Italy: Between the 1st and 28th
Belgium: Between the 1st and 20th
Denmark: Between the 1st and 28th
Sweden: Between the 1st and 28th
United Kingdom: Between the 1st and 28th
Ireland: Between the 1st and 28th
Update VAT Payment Term: (when your company pays VAT to the State):
two months for Germany, when you requested a Dauerfristverlängerung
Update VAT Refund Term (when the State owes VAT to your company):
two months for Germany when you requested a Dauerfristverlängerung
for the Netherlands and France, it depends on how long the State takes to refund VAT credit
Specify VAT Rates: Assign VAT rates to your income and expense categories in the Agicap category tree
Ensure that VAT categories are set at the same level as your forecast input level. If a VAT category is a subcategory, make sure your forecast input is also set at the subcategory level.
3. Refresh VAT Calculations
Once the setup is complete:
Refresh Computation: Go to the Cashflow plan page and click on the Refresh computation button to update your VAT forecasts.
Tips 💡
Negative Amounts: Cells with negative amounts in the Cashflow plan are not considered in the automatic VAT calculation. Ensure your entries are accurate.
VAT at Billing Date: If your company accounts for VAT at the billing date (common in 🇪🇸 Spain and 🇮🇹 Italy), you may need to manually adjust your forecasts or use key indicators as a workaround.
FAQs ❓
Why is the VAT calculation not matching my expectations?
Check VAT Rates: Ensure that VAT rates are correctly assigned to all relevant categories.
Refresh Calculations: Click the Refresh computation button to update the VAT forecasts.
Can I change VAT payment frequency after setting it up?
Yes, you can change the VAT payment frequency at any time:
Hover over your VAT category in the cashflow plan and click on ⚙️ to access the VAT settings.
Adjust the VAT Payment Frequency to your desired setting (monthly or quarterly).