As I am a start-up entrepreneur, I have registered for the VAT exemption. However, I have already incurred a lot of costs this quarter that I will now lose out on. Was it a good idea to opt for the exemption? I question.
Is it an option to enter the invoice amount excl. VAT on all invoices where I have the option, so that I know exactly what I am missing out on and can possibly anticipate this?
It is always a matter of weighing up what is most advantageous (you cannot do this in advance unless you know exactly what costs you will incur before you start).
With vAT exemption, you cannot deduct the vAT on your incoming invoices, but the vAT has indeed been paid and you therefore include it in your expenses, which reduces your profit (and therefore also reduces the amount of personal income tax you pay). On the other hand, the state is that you do not have any VAT receipts from your outgoing invoices (or cash sales) and that they are not paid to the VAT authorities. You only have to declare purchases from EU companies to which the VAT reverse charge applies to the VAT authorities using a special 629 return before 20 April, July, October or December and pay the VAT due to the VAT authorities.
You really should try it out for yourself. Even if you don’t have a company number yet, you can already go ahead.
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