In Holland we have a rule that you can get a VAT reduction for small businesses. How do I handle this in Manager?
A photographer has annual sales (excluding VAT) of € 30,000. About this 21% sales tax will be charged. That is € 6,300. He bought goods (such as cameras, films, filters and lenses) with € 5,330 VAT which he has paid. This amount may be subtracted as input tax. To determine how much tax he has to pay, he makes the following calculation.
VAT 21% on € 30,000 € 6,300 Tax bought goods € 5.330- VAT amount payable € 970 Reduction for small businesses € 970- To pay € 0
The VAT reduction leads to more profit. So I need to add the income tax return for the benefit of the VAT reduction to count on the results. But how do I handle this in Manager? I do not physically get paid to my bank account (the amount to receive is € 0). In Manager, at Summary, Other liabilities, I still see I need to pay Tax.
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