VAT Management

Track, calculate, and manage your Value Added Tax (VAT) obligations with period locking and deadline tracking.

Overview

The VAT page gives you a clear view of your tax position:

• VAT collected — Tax charged on your invoices
• VAT deductible — Tax paid on your business expenses
• Net VAT — The amount you owe (or can reclaim)

VAT periods

VAT is organized by period (monthly or quarterly, depending on your jurisdiction):

• View VAT calculations per period
• See detailed breakdowns by VAT rate
• Track which periods have been filed

Period locking

After filing your VAT return, lock the period to prevent accidental changes:

1. Go to the VAT page
2. Select the period you've filed
3. Click Lock Period

What locking does

• Prevents editing or deleting invoices and expenses in the locked period
• Shows a warning banner on documents within locked periods
• Ensures your filed numbers remain consistent with your records

Unlocking

If you need to make corrections after locking:

1. Go to the VAT page
2. Find the locked period
3. Click Unlock
4. Make your corrections
5. Re-lock when done

WARNING

Only unlock periods when you need to file a correction. Frequent unlocking defeats the purpose of the compliance safeguard.

Deadline tracking

MyCompanyDesk tracks VAT filing deadlines based on your country:

• Visual indicators for upcoming deadlines
• Warnings when a deadline is approaching
• Clear status showing which periods need attention

Country indicator

Your VAT settings respect your company's country of registration. This affects:

• Standard and reduced VAT rates
• Filing period structure (monthly/quarterly)
• Deadline calculations
• Reverse charge applicability

Reverse charge

For intra-EU business-to-business transactions, enable reverse charge:

1. Make sure the customer has a valid EU VAT number
2. Enable Reverse Charge in Company > Features
3. When creating an invoice for an EU B2B customer, select the reverse charge option
4. The invoice will show 0% VAT with the reverse charge notation

Tips

• Lock periods immediately after filing to prevent accidental changes
• Review the VAT report in Reports for a broader view
• Make sure both your VAT number and your customers' VAT numbers are correctly entered
• Use the bookkeeper/accountant dashboard profile for a VAT-focused view