OK, let’s say I import 1,000 EUR worth of goods from outside Netherlands. I use tax code BTW 21% non-EU. If this is the only transaction. What should be shown in 4a and 4b?
4a. grondslag - 1000
4a. omzetbelasting - 210
4b. nothing, because this is for countries inside EU
@patrickdewit, the latest version (16.4.64) is fixing the inconsistency between tax summary and tax transactions report.
But you paid only 1000 to supplier. How come you claim 210 as tax paid if you didn’t pay it at all.
Also, 1000 is tax-exclusive price… so maybe “4a. grondslag” should be actually 1210 EUR?
I just used these amounts for the sake of simplicity. But you are right.
It says on top of form “Bedrag waarover omzetbelasting wordt berekend” which translates into “Amount over which tax is calculated” which means without tax. The other column says “Omzetbelasting” which translates into “VAT”
So back to your example:
Suppose you live in the Netherlands 
You bought goods from a non-EU country of which VAT at import is obligated or has been reversed to you, You then enter the customs-value (value of the goods, additional costs like packaging, transport, commission, insurance), and extra taxes (non VAT) like for cigarettes, exclusive VAT in “Grondslag”. The amount of VAT you calculate and enter in “Omzetbelasting”. In most cases this VAT can be deducted as pretax in (5B), leaving you with 0 (5C). Despite you have to fill out 4A.
So looking at the numbers (see @patrickdewit below)
EDIT: 11-5-2016 extra info
The point is that no tax is actually being paid in these cases. You have to specify them, but the amount of tax you were supposed to be paying (as if you bought the item in the Netherlands) has to be specified. You substract the same amount again in 5B. So net there is no change, but it is properly represented on the form.
I am not an expert on this tax topic, but I think Hans is explaining it incorrectly. Suppose you buy something from abroad and they reverse charge the VAT. The VAT you pay is zero. However, when reverse VAT (BTW verlegd) is conducted you are supposed to report these numbers. You are supposed to pay VAT based on this amount in the VAT category these items would be classified. Let’s say you are supposed to pay 21% VAT.
We have bought for 1000 euro’s, (“Grondslag”, 4a) the VAT amount would be 210 (“Omzetbelasting”, 4b) which is not payed to the supplier. As it is reverse VAT we are supposed to directly pay this to the Dutch tax adminstration. But, to keep the tax balance we add this amount from 5b (“voorbelasting”) which is the tax payed, so the net change is zero. This is discussed here (although in Dutch, Google Translate might help)
So looking at the numbers:
4a → 1000
4b —> 210
5a → 210 (summation of all categories 1 to 4)
5b —> 210 (tax payed in thay year, from tax calculation in manager)
5c—> 0 (in this example, with only the reverse VAT transaction)
OK, thanks all. I’ve made adjustments to VatReport.cs file.
This code is now included in the latest version, so upgrade and see how it works.
https://github.com/lubos/ManagerExtensions/blob/master/Netherlands/VatReturn.cs
I agree, the latest update seems to be working fine. Not sure if you would like to implement the “Kleine Ondernemers Regeling”, KOR. as @Hennie suggested. Manually making a journal transaction to P&L works fine, but it would be nice if the customized report would include the right numbers as well, so the total amount of tax to be payed is displayed properly.
I think it’s good now. Thanks!
@ Lubos,
Thanks for the good work with this VAT-report. As I wrote earlier it is almost 100% complete. Is there any change that you will include the KOR (Kleine Ondernemers Regeling) as well. Would be great.
Kind regards,
Hennie
Not sure about the best way to handle KOR yet. How does other accounting systems deal with this?
Hi Lubos,
The amount on yearly basis that is cleared for the VAT and known as KOR can vary per year. I suggest you won’t bother about that. The easiest way to offer the opportunity to enter an amount for KOR is to create a separate VAT code for the KOR, linked to the account for VAT to be paid.
A user has to open/create a new P&L account-code for the KOR. By means of a journal entry, an amount can be entered for this account and the contra-account is the KOR-VAT-code. The amount entered on the KOR-VAT-code can then be shown on the appropriate line on the VAT report and deducted from the VAT-amount to be paid.
I hope this will help you.
Kind regards,
Hennie
Hi Lubos,
The Dutch VAT-report is still not 100% correct. I can imagine you lost your way. That’s why I decided to write this long reply, to explain the Dutch VAT-systems and to make clear what the meaning of all the lines on the tax-report is so that you can improve the report. I hope you’ll appreciate this.
General:
• Tax to be paid is rounded down
• Deductable Tax( f.e. paid on a purchase) is rounded up
1 Prestaties Binnenland (Inland sales of Goods and Services)
1a Leveringen en diensten belast met hoog tarief.
Here all the net sales should be recorded that are charged at the high rate of 21%
1b Leveringen en diensten belast met laag tarief.
Here all the net sales should be recorded that are charged at the low rate of 21%
1c Leveringen en diensten belast met overige tarieven, behalve 0%.
This line is for all net sales at at a different rate other than 0%. Think of the special rate of 11% for sportcantines.
1d Prive-gebruik
This line is meant for the private usage of company goods (f.e. private usage of a companycar, private usage of company-telephone), the net value and the VAT. Example: List-price of the car € 30,000,- Private usage is calculated at between 0% and 25% of list-price of the car. The percentage is depending on the Co2-emission value of the car. The VAT itself is nowadays 2,7% of the list-price
1e Leveringen/diensten belast met 0% of niet bij u belast
This line is for all sales that are exempt of VAT. Think f.e. of medical services, services related to insurances and insurance policies.
2 Verleggingsregelingen binnenland
2a Leveringen/diensten waarbij de heffing van omzetbelasting naar u is verlegd
This is a very special and rare category. I don’t think there will be any user of Manager in the Netherlands that has to deal with this category
3 Prestaties naar of in het buitenland
3a Levering naar landen buiten de EU (uitvoer)
This category is for all sales of goods and services outside the EU. The only thing that needs to be reported on the tax-form is the net sales-value of all transaction.
3b Leveringen naar of diensten in landen binnen de EU
This category is for the B2B sales to EU customers. Only the sales value has to be recorded The sale itself is not charged with VAT. A sale to a private person inside the EU is considered to be an inland sale and therefor charged with VAT
3c Installatie/afstandsverkopen binnen de EU
This is, like 2a, a very special and rare category. I don’t think there will be any user of Manager in the Netherlands that has to deal with this category
4 Prestaties vanuit het buitenland aan u verricht
When a business imports goods or services, the corresponding VAT over the imported value should be paid at the moment of import to the tax-authorities. This paid VAT is however deductible at section 5b. Say the imported value is € 1,000.- I pay at the border 21% is € 210.- and I deduct € 210.- at 5b The final balance is € 0.-. The overcome the administrative hassle this brings, there is a rule for businesses that when they import goods or services, they don’t have to pay the import VAT at the border, but it is postponed until the return the VAT-tax-form.
4a Levering/diensten uit landen buiten de EU
When goods or services are imported from outside the EU, you have to report the net value of these transactions and the corresponding VAT. At the same moment the VAT amount is deducted at 5b. The VAT balance for these transactions is zero.
4b Levering/diensten uit landen binnen de EU
When the goods or services are imported from a country inside the EU you have to report the net value of these transactions at 4b as well as the corresponding VAT. At the same moment the VAT amount is deducted at 5b. The VAT balance for these transactions is zero.
5 Voorbelasting en kleine ondernemersregeling
5a Omzetbelasting (rubrieken 1 t/m 4)
Here you have to the subtotal of the VAT-totals from sections 1 till 4
5b Voorbelasting
This line shows the paid VAT-totals (Vat paid to suppliers and recorded as deductible + plus the VAT amounts of line 4a and 4b)
5c Subtotaal (rubriek 5a min 5b)
This is the subtotal of 5a minus 5b
5d Vermindering volgens de kleine ondernemersregeling
In case (on annual basis) the total tax amount to be paid at line 5c , is less less than € 1345.- Dutch VAT-law says that this amount is cleared. So the business doesn’t have to pay this amount at all. When the total at line 5c is between an amount of € 1345.- and 1884,- a certain part of this amount has to be paid and when the annual amount is higher than € 1884.- the VAT should be paid in full. Anyway the amount that is cleared has to be shown in the P&L as a profit. This rule is also known as KOR.
5e and 5f Schatting etc
This line is of no importance. With a special permit, you are allowed to send in VAT tax forms with estimates. These permits are only given in very very rare situations.
5g Totaal
This is the total of 5c minus 5d, 5e and 5f
Bug in the Dutch VAT report as per 31-07-2016
One of my Dutch clients sold in June 2016 goods to a German company for a net sales value of € 2,060.-
This transaction was shown at line 3b, which is correct, but it is also shown at line 4b as a negative. This is not correct. It should not be shown at line 4b at all.
I hope my reply helps you to improve the “Dutch VAT Report”, because this is one of the most important reports for day to day business and it is a very crucial one.
Kind regards,
Hennie Eerhart.
Thanks @Hennie
I’m going to rewrite VAT report in HTML so it can be easier to understand and fixed by community (where needed). Right now, the report is in C# and it seems barrier of entry to fix issues is too high.
Frankly, there is a lot of generic stuff I want to work on Manager and don’t want to be a bottleneck when it comes to country-specific reports which are also very important.
Within a week, the report should be available in HTML, then we can look at these issues.
The advantage of the report being in HTML is that anyone who knows HTML will be able to fix the report directly in Manager and then share those changes with others without me slowing things down.
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Thanks for your answer. I think I found what you could call a “bug” in the way Manager deals with VAT. Let me explain. All amounts which are credit bookings on the VAT 21% are shown under sales. All debit bookings are shown under paid. Last month I made a journal entry (private usage of a business phone)
Disposal 121,-
Telephone expenses 100.- Credit
VAT 21% 21.- Credit
In all VAT reports the net amount and the VAT were shown as a sale (VAT Received) and not as a negative on the VAT-paid which it is. The way Manager deals with this is wrong or is there something which I did wrong or misunderstood? Most Dutch accounting software have separate codes for VAT Paid (purchaseledger) and VAT Received (salesledger) each with separate G/L-codes. Introducing separate codes could be the solution. I hope you can solve this problem.
Hennie, Je heb in je voorgaande verhaal de fout gemaakt met btw laag dit moet 6% zijn in plaats van 21%/
@ Henri,
Ik weet niet waar jij het over hebt en waar jouw antwoord op slaat. Ik heb het in mijn verhaal nergens over BTW Laag.
Jouw reactie draagt op geen enkele wijze bij aan de ontwikkeling van Manager
For those who don’t understand the Dutch language, here is the translation of my answer to Henri:
I don’t know what you are talking about and to what your answers refers to. Nowhere in my “story” i talk about the VAT Low rate of 6%.
Your reaction doesn’t contribute to the development of Manager
Vriendelijke groet, kind regards,
Hennie
Beste Hennie,
In het verhaal wat je een tijdje terug er op heb gezet
@Hennie; Your post of 10 days ago
If someones pointing out an error that you made, there is no need to become unfriendly…