I would like to use the opportunity to introduce our Exact online & VAT specialist Max. Max is a young professional who gets excited about having your balance actually in balance.
Exact online & VAT
Last year we updated the way we processed the books. It was done till then in a rather old fashioned bookkeeping program with a type of dinosaur name. Which of course fits the bill as bookkeeping has not changed since before ice age started. A balance needs to be in balance, and the profit and loss needs to connect to the change in the balance.
However, institutes and people have changed. The institute named the Tax Office is about to change, but naturally Covid19 has slowed down the pace.
Exact online & VAT: changes of the tax office
The tax office uses a portal where you as entrepreneur can log on with a username and a password, which is not your digital ID, to file your VAT return. Then if you log on you see the form that basically is a digital version of the paper form we have had for decades.
If you pay attention, you see the tax office referring to this manner of filing your VAT details as the old fashioned manner. “naar het oude portaal” (to the old portal). When something is old, there must be something new.
The new method will be abandoning the old portal and either you file via a E3 certificate to communicate with the Government, or you file via your bookkeeping software. This is not a simple change in way of filing, no, the tax office wants you to provide your full bookkeeping for that period of time. That is much different than simply filing a form, where it is possible you are tempted to complete it more in line with your cash base. That is ofcourse illegal, but it does happen.
Why would the tax office like you to file your full bookkeeping? Simple answer, they want to check if what you provide as VAT details is indeed correct. Moreover, they want to see what will be your forecast profit wise. Based on that forecast the tax office will already impose a preliminary tax assessment. This already happens, but again up to the desire of the entrepreneur how to complete this forecast. This will change to the tax office making the calculations themselves.
This is not only a hunger for money, but also a protection of you the entrepreneur to be able to pay the tax before it might have been spend already.
Exact online & VAT: changes of the entrepreneurs
Not only the tax office is changing its manner of operating, also the people change their manner of living. Printing a bank statement and putting it in a folder feels like the 80’s of the last century. Who does that? Well I do J , as I am at an age that I still expect the server to crash. I am then still able to provide the books upon request of the tax office.
Most entrepreneurs like the bank statements to be uploaded in the accounting system automatically and to have the invoices be processed likewise. Exact online offers exact-ly this option of you taking a picture of the invoice and this invoice then arrives in the system where Max can process that.
Still the entrepreneur needs to keep the invoice 7 years on file. Some think that uploading is enough, hence no longer necessary to keep the original invoice. That is not correct. The invoices are uploaded in PDF format. PDF is open to changes. Changes in date, name of the invoice etc are possible. That the tax office finds undesirable, hence the original could be asked for.
Exact online & VAT: Max
Max is young, Max loves to work with exact online and Max is very much excited about our clients either using the Exact online software or to teach them how to optimize the use of Exact online software.
For instance, you have an actual shop with a cash registrar. Before you purchase a cash registrar or when you think it is time to replace one, contact Max to see which one is able to connect with Exact online. That makes the life of the entrepreneur much more relaxed, as at the end of the day no more extracts from the cash registrar needs to be kept on file.
Or you work online and use portals such as Mollie who collect in your name the payments. Exact online can make a connection to this Mollie system and book the turnover automatically.
We think tax-is-exciting. Sometimes before a proper tax return can be filed, books need to be processed. This is often done in the VAT quarter months of January, April, July and October. In the old fashioned ice age way that meant a lot of work to be done in these months. The new exact online Max way implies the books can be done every week. In the VAT filing month it is simple checking and filing the VAT return. That can even make our clients become excited.
Sorry for the dashes in the middle of the word tax-is-exciting. Apparently Google has a dirty mind and sees only a three letter word that we refer to when we practice to reproduce ourselves. Anything related to that word is spam, hence this devout solution.