The Tax and bookkeeping go hand in hand. The reporting of the Value Added Tax will soon change, what will that change imply?
Tax and bookkeeping – Value Added Tax filing
The Value Added Tax (VAT) filing is right now a form where you complete the details without proving these details are indeed correct. That will soon change into a filing where you not only provide the VA T form, but also upload a part of the bookkeeping that should reflect the VAT position.
The aim of the Dutch tax office is to get more control over the VAT reporting. But also to be up to date of the result of the company. If the report shows a positive result, we expect the tax office to invite you to pay already the income tax or corporate tax over this profit.
Regardless, at the end of the year four quarterly reports make one annual report. Hence no need to make the entrepreneur income tax return or corporate income tax return, as the tax office will make the tax return for you.
Tax and bookkeeping – the tax trouble shooter
We think that progress is good, however, the system should remain open for making amendments. For instance, should the tax office see a profit on the horizon and send you already a preliminary assessment for the amount, it is not said you will in the end make a profit.
Before the end of the year we often bring the salary of the director in line with legislation or tax optimal amount, which could imply the profit is fully consumed. If during the year you have already been asked to pay the corporate tax over the profit that is not there, you can run into a liquidity problem.
For those kind of situations you need a tax trouble shooter and we think we can offer you this service.
Orange Tax Services – tax is exciting
Uploading the bookkeeping to the Dutch tax office is the future, a not too far away future. In order to be able to meet such a demand, it is good now already to make decisions to make future reporting easier. We have the opinion that using Exact Online accounting software is future proof software.
We also think that you, the entrepreneur, should not act as bookkeeper when you are not. Hence we are eager to assist you with your accounts in Exact online software in such a manner that we take care of the bookkeeping while you are earning your income with something you are good at.