Understanding VAT Calculations in Agicap
Agicap helps you estimate your VAT obligations by calculating VAT based on your cashflow categories and transactions. The VAT calculation considers both collected VAT (from your sales inflows) and deductible VAT (from your purchase outflows) to provide you with a forecast of your VAT balance.
Setting Up VAT Rates on Categories
To enable accurate VAT calculations, you need to assign VAT rates to your cashflow categories:
Define VAT Rates on Subcategories: Assign the appropriate VAT rate to each subcategory that represents a specific type of transaction (e.g., "Sales of Goods" at 20% VAT).
Alternatively, Define VAT Rates on Mother Categories: If you prefer, you can assign VAT rates directly to mother categories.
🚨 Note: Best practice is to define VAT rates either on all subcategories or on all mother categories to ensure accurate calculations.
How VAT Calculation Works
Agicap calculates VAT in three steps for each tax period (monthly or quarterly):
Step 1️⃣ - Calculating VAT from Subcategories
For each subcategory with a defined VAT rate:
Formula:
VAT = Value * VAT rate / (1 + VAT rate)Value: The amount in your cashflow plan cell for that subcategory.
Step 2️⃣ - Calculating VAT from Mother Categories
For each mother category with a defined VAT rate:
Formula:
VAT = Value * VAT rate / (1 + VAT rate)Value: The total amount of the mother category in your cashflow plan.
Step 3️⃣ - Determining the Maximum VAT
For each mother category, Agicap compares the VAT calculated from subcategories (Step 1️⃣) and the VAT calculated from the mother category (Step 2️⃣), and takes the maximum of the two as the final VAT amount for that category.
💡 Example:
Suppose you have a mother category "Cat1" with a VAT rate of 12% and two subcategories:
Sub1: VAT rate of 21%, Value of €20,000
Sub2: No VAT rate, Value of €10,000
Calculations:
VAT from Subcategories:
Sub1 VAT: €20,000 * 21% / (1 + 21%) = €3,471.07
Sub2 VAT: €10,000 * 0% = €0
Total VAT from Subcategories: €3,471.07
VAT from Mother Category:
Cat1 Total Value: €30,000
Cat1 VAT: €30,000 * 12% / (1 + 12%) = €3,214.29
Final VAT for Cat1:
MAX(€3,471.07, €3,214.29) = €3,471.07
Refreshing VAT Calculations
To ensure your VAT calculations are up-to-date:
Click on Refresh computation (forecast + KPI) in the app.
Refresh all scenarios/projects to update your cashflow plan completely.
Tips 💡
If a cashflow plan cell has a negative amount, it will not be considered in the automatic VAT calculation.
The forecast input level must always be set on the same level as the VAT category.
For companies with specific VAT payment frequencies (e.g., quarterly), ensure that your VAT settings in Agicap reflect this for accurate forecasts.
Q&A ❓
How do I handle VAT credits that decrease my next VAT payment?
If your VAT credit decreases the amount of your next VAT payment (rather than being refunded by the state), you should configure Agicap to account for this in your VAT forecast settings. Please contact Agicap's chat support if you want to check if your setting is correct.
What if I need to change the VAT payment date?
You can customize the VAT payment date from the VAT settings in Agicap. The eligible days vary depending on your country to match local regulations.