Not all expenses count for your VAT return. Only expenses that meet three specific conditions allow you to recover VAT.
Please note that this article provides general guidance only. Tax rules may vary depending on your individual situation. When in doubt, ask your Tax Coach.
This article explains each of the three conditions you need to meet to recover VAT on a professional expense.
1/ Does the expense have a purchase invoice with your VAT number?
You can only recover VAT from purchase invoices, not receipts. Those invoices must have your own VAT number printed on them.
For these expenses, make sure the Invoice tick box is checked in the Add/Edit Expense screen.
2/ Is a proof document attached to the expense?
Accountable only counts expenses that have a proof document attached. This is also a best practice in case of a tax audit.
3/ Does the expense category allow VAT recovery?
Certain accounting categories, such as restaurant costs or insurance, are not VAT-deductible. This is set by the tax code, not by Accountable.
Key takeaways
Only purchase invoices (not receipts) with your VAT number printed on them allow you to recover VAT.
Always attach a proof document to every expense, especially for a potential tax audit.
Some categories, such as restaurants and insurance, are not VAT-deductible by law.
In Accountable, check the Invoice tick box in the Add/Edit Expense screen for expenses that qualify.
Need help? Chat with us or email support@accountable.eu, we're happy to help.