Dear forum users,
a question with regard to the VAT return in The Netherlands - report.
Awesome you guys built in this function. Very helpful, thanks for that!
I have an important question though. In my business, part of my income is based on activities where I have to add 21% VAT to the invoice (training programs for companies I provide), and for part of my activities I don’t have to do so (due to the fact goverment decided these activities are VAT-free activities, in my case specificaly: psychological treatment). So far so good, nothing complicated.
The complexity starts when it comes to the costs I have to make for my company. The VAT I pay on expenditures for my company, I can deduct from the VAT I have to pay. However, I can only deduct the VAT I paid for expenditures that are related to my VAT-charged activities (let’s say costs I make for a website for my training programs) but not for the ones that are related to the VAT-free activities (let’s say the costs for the website that is related to the psychological treatment). It becomes even more complicated, because as you can imagine, many costs I make are meant for both branches of the tree (for instance office space, in which I perform both my training programs AND the psychological treatment). This means I need to be able to create some kind of a splitting in my expenditure list, where I can say about each expenditure if it’s related to 1) a VAT-charged activity, 2) a VAT-free activity or 3) a mixed VAT-free and VAT-charged activity and what the proportion of both is for this expenditure.
Is there any solution to this problem in the program?
Thanks so much for your help in advance!