A VAT return looks complicated, but it comes down to one sum: the VAT you charged your customers minus the VAT you paid yourself. These are the steps.
1. Choose the period
Most entrepreneurs file per quarter. The return and the payment are due at the latest on the last day of the month after the quarter. Check with the tax authority which period applies to you.
2. Collect all invoices of the quarter
You need the sales invoices (VAT you owe) and the purchase invoices and receipts (VAT you get back as input VAT). Record the amount including VAT, the VAT rate and the date of every invoice. With automatic booking of purchase invoices that takes a few taps.
3. Add up per rate
List the turnover and the VAT per rate: 21%, 9% and 0%. Is VAT reverse-charged to you or to your customer? That is shown separately, see reverse-charge VAT explained.
4. Work out the balance
VAT owed minus input VAT is the amount you pay, or get back if it is negative. Check that every total is the sum of the lines below it.
5. Fill in the boxes
Copy the amounts per box into your return. A bookkeeper can do this for you, or work in the same administration: see work with your bookkeeper online.
Common mistakes
- Booking an invoice in the wrong quarter (mind the invoice date).
- Overlooking VAT on purchases from abroad.
- Rounding differences: round the VAT per invoice to whole cents and add those amounts up.
Moonlight Bookkeeping puts the figures per quarter in the order of the return and calculates in whole cents, so your totals add up.
This guide is general information, not tax advice. Check the current rules for your situation with the tax authority or your bookkeeper.