How do you correct a wrong VAT type in Accountable?
If you are a franchisee but accidentally selected "Subjected to VAT" in Accountable instead of "Franchisee," you need to correct this as soon as possible to avoid incorrect VAT charges on your invoices and missed reporting obligations.
This article walks you through the exact steps to fix your VAT status in Accountable, covering two scenarios: one where your client has already paid and filed their VAT declaration, and one where they have not.
⚠️ Before taking any steps, first verify your VAT type on Intervat. Follow our step-by-step guide: How to verify your VAT type when setting up your account on Accountable
Selecting the wrong VAT status in Accountable can lead to several issues:
Incorrect VAT charging: If you select "Subjected to VAT" by mistake, you may end up charging VAT on client invoices even though, as a VAT franchisee, you are exempt from VAT. This causes confusion for your clients, who may pay and attempt to deduct VAT that should never have been charged. Additionally, you cannot submit a VAT return under your VAT franchisee status.
Missing special VAT return: If you need to submit a special VAT return (for example, for purchases from other EU countries), this requirement will not appear in your account. Accountable will not prompt you to file this return, which can lead to non-compliance and missed reporting obligations.
✨ Scenario 1: Your client has already paid and submitted their VAT declaration
If your client has already paid and submitted their VAT declaration, follow these steps:
Step 1: Issue credit notes for incorrect invoices
Cancel all revenue invoices created under the wrong VAT type by issuing credit notes. These credit notes must be linked to the current quarter.
⚠️ Important: keep your VAT status set to "Subjected to VAT" when creating the credit notes. Do not change your VAT status yet. Only switch to "Franchisee" after all credit notes have been correctly created. If you change it too early, the credit notes will be booked under the wrong VAT status and the correction will not be valid.
Invoice revenue | Ticket revenue |
✅ If created in Accountable, generate a credit note from the invoice and link it to the current quarter | ✅ Create a credit note and link it to the current quarter |
Step 2: Change your VAT type to Franchisee 🔄
Go to Intervat to double-check your VAT type.
In Accountable, go to Settings > Taxes.
Change your VAT type from "Subjected to VAT" to "Franchisee".
Don't forget to click Save.
⚠️ Once updated, new invoices will automatically use the correct VAT type. However, any invoices created under the wrong VAT type must be adjusted manually.
Step 3: Adjust past expense invoices 🔍
Go to the Expenses tab in Accountable.
Select each invoice that was booked under the incorrect VAT type.
Open Advanced Settings, change the VAT type, and save.
Step 4: Recreate revenue invoices 📝
Create new revenue invoices with the correct VAT type ("Franchisee").
Make sure these invoices are linked to the current quarter.
Step 5: Refund VAT to your client 💸
Refund the VAT you incorrectly charged your client to stay compliant with VAT regulations.
Recap: ✨ Scenario 1, your client has already paid and submitted their VAT declaration
Action | Revenue | Expenses |
Step 1: Issue credit notes | ❗ Cancel revenue invoices created under the wrong VAT type. Issue credit notes linked to the current quarter. | (not applicable) |
Step 2: Change VAT type | 🔄 Change VAT type from "Subjected to VAT" to "Franchisee." | (not applicable) |
Step 3: Adjust expense invoices | (not applicable) | 🔍 Go to Expenses, select each invoice booked under the wrong VAT type. Open Advanced Settings, change the VAT type. 💾 Click Save |
Step 4: Recreate revenue invoices | 📝 Create new revenue invoices with the correct VAT type ("Franchisee"). Link them to the current quarter. | (not applicable) |
Step 5: Refund VAT | 💸 Refund the VAT that was wrongly charged to your client. | (not applicable) |
🕒 Scenario 2: Your client has not paid or submitted their VAT declaration yet
If your client has not yet paid or submitted their VAT quarter, the process is simpler.
Step 1: Change your VAT type in Settings 🔄
Navigate to Account > Settings > Taxes.
Change the VAT type from "Subjected to VAT" to "Franchisee".
Don't forget to click Save.
⚠️ Once updated, new invoices will automatically use the correct VAT type. However, any invoices created under the wrong VAT type must be adjusted manually.
Step 2: Adjust past revenue invoices ✏️
For revenue invoices:
Go to Revenue and select the incorrect invoice.
Click Edit.
Update your business info and VAT type.
Delete and re-enter the items with the correct VAT type and rate.
Save the invoice.
Resend the invoice to your client.
For revenue tickets:
Go to Revenue > Tickets.
Select the incorrect entry.
Open Advanced Settings, update the VAT type and rate, and save.
Resend the invoice to your client.
Step 3: Adjust past expense invoices 💼
Go to Expenses in Accountable.
Select each invoice booked under the wrong VAT type.
Open Advanced Settings, change the VAT type, and save.
Recap: 🕒 Scenario 2, your client has not paid or submitted their VAT declaration yet
Action | Revenue | Expenses |
Step 1: Adjust revenue invoices | ✏️ Go to Revenue, select the incorrect invoice. Click Edit. Update the VAT type and business info. Delete and re-enter the items with the correct VAT type. 💾 Click Save Resend the invoice to your client. | (not applicable) |
For revenue tickets: | 🎫 Go to Revenue > Tickets. Select the incorrect entry. Open Advanced Settings, update the VAT type and rate. 💾 Click Save Resend the invoice to your client. | (not applicable) |
Step 2: Adjust expense invoices | (not applicable) | 💼 Go to Expenses, select each invoice booked under the wrong VAT type. Open Advanced Settings, change the VAT type. 💾 Click Save |
Key takeaways
If you are a franchisee, you must select "Franchisee" as your VAT type in Accountable, not "Subjected to VAT."
The correction process depends on whether your client has already paid and submitted their VAT declaration (Scenario 1) or not (Scenario 2).
In Scenario 1, issue credit notes first before changing your VAT type, then recreate invoices and refund any incorrectly charged VAT.
In Scenario 2, update your VAT type in Settings > Taxes, then edit existing invoices and expense records manually.
After updating your VAT type, new invoices use the correct setting automatically, but past records always require manual adjustment.
Need help? Chat with us or email support@accountable.eu, we're happy to help.