How to correct a wrong VAT type in Accountable
If you are actually Subject to VAT but mistakenly selected Exempt in Accountable, your invoices were created without VAT, even though you should have been charging it. Correcting this quickly keeps you compliant and avoids penalties.
This article walks you through each step: cancelling existing invoices with credit notes, updating your VAT type in Accountable, contacting your clients, and recreating your invoices correctly.
⚠️ Before taking any steps, verify your VAT type on Intervat. Follow the step-by-step guide: How to verify your VAT type when setting up your account on Accountable
What goes wrong when your VAT type is set incorrectly
No VAT charged on your invoices: as "Exempt", your invoices are created without VAT. As a business Subject to VAT, you should have charged 21% (or the applicable rate) to your clients. This VAT is still due to the tax authorities.
No VAT return available: with the "Exempt" type, Accountable does not generate a periodic VAT return. This means you can miss filing obligations that apply to you, leading to delays and fines.
No VAT deduction on your expenses: as "Exempt", you cannot recover the VAT you paid on professional purchases. As a business Subject to VAT, you are entitled to deduct that VAT.
Correcting your VAT type promptly helps you avoid these problems and stay compliant.
Step 1: Credit note your invoices 🧾
Before taking any other action, cancel all invoices created under the wrong VAT type by issuing credit notes. These credit notes must be linked to the current quarter.
Create credit notes for both revenue and expense invoices.
Make sure the credit notes mirror the original invoices (without VAT, exactly as they were booked).
⚠️ Important: keep your VAT type set to "Exempt" when creating the credit notes. Only switch to "Subject to VAT" after all credit notes have been correctly created. Changing it too early means the credit notes will be booked under the wrong VAT type and the correction will not be valid.
Revenue | Expenses |
✅ If created in Accountable, generate a credit note from the invoice and link it to the current quarter | ✅ Create credit notes using the same purchase invoices and link them to the current quarter |
💡 Not sure how to create a credit note? These step-by-step guides show you exactly how:
For revenue invoices:How to refund a client or cancel an invoice with a credit note
For expense invoices:How to create a credit note for a previous purchase as a Subject to VAT business
Step 2: Upgrade your subscription 🔁
To change your VAT type, upgrade your plan from Bookkeeping (GROW) to Taxes or Max.
Step 3: Change your VAT type in settings ⚙️
Go to Intervat to double-check your VAT type.
In your Accountable account, go to Account > Settings > Taxes.
Change your VAT type from "Exempt" to "Subject to VAT".
Click Save to confirm.
⚠️ Once updated, new invoices will automatically use the correct VAT type. Any invoices created under the wrong VAT type must still be adjusted manually.
Step 4: Contact your clients 📞
Because you should have charged VAT but didn't, you need to correct this with your clients. Discuss the correction with them before creating new invoices, as your approach depends on what the client agrees to. You have two options:
Add VAT on top of the original amount: the client pays an extra 21% VAT.
Include VAT within the original amount: you absorb the VAT, which reduces your net revenue.
Sales Type | Action | VAT Impact |
Business to Business (B2B) within Belgium | 🧾 Credit note + new invoice + collect VAT (or absorb VAT) | 💰 VAT must be collected from the client or absorbed within the total price. |
Business to Consumer (B2C) within Belgium | ✏️ Edit the VAT status of the "other revenue" → (Advanced settings) | 💸 Absorb VAT within the total price. |
Business to Business (B2B) outside of Belgium | 🧾 Credit note + new invoice | 🌍 No VAT impact on the collected amount. |
Business to Consumer (B2C) within the EU | ✏️ Edit the VAT status of the "other revenue" → (Advanced settings) | 💸 Absorb VAT within the total price. |
Business to Consumer (B2C) outside the EU | ✏️ Edit the status of the "other revenue" | 🌍 No VAT impact on the collected amount. |
💡 Reminder: the credit note must be created while your VAT type is still set to "Exempt" (see Step 1). Only issue the new invoice after switching to "Subject to VAT".
Step 5: Recreate your invoices 📝
Create new revenue and expense invoices with the correct VAT type ("Subject to VAT").
Make sure these invoices are linked to the current quarter.
For expenses and revenue receipts, adjust the VAT type via Advanced Settings.
⚠️ For official revenue invoices: you can only edit or recreate the invoice directly if your VAT quarter has not been submitted yet and your client has not yet submitted their own VAT return. If your VAT quarter is already submitted, or your client has already declared the VAT, create a credit note for the revenue invoice instead (see Step 1) and then issue a new, correct invoice.
✨ Recap: correcting your VAT type from Exempt to Subject to VAT
Step | Revenue | Expenses |
1. Credit note | ✅ While still set to "Exempt", generate credit notes from the invoices, link to the current quarter | ✅ While still set to "Exempt", create credit notes using the same purchase invoices, link to the current quarter |
2. Upgrade subscription | 🔁 Upgrade from Bookkeeping (GROW) to Taxes or Max | 🔁 Same as for revenue |
3. Change VAT type | ⚙️ Go to Account > Settings > Taxes, change from "Exempt" to "Subject to VAT", click Save | ⚙️ Same as for revenue |
4. Contact clients | 📞 Inform clients of the correction. 💡 Choose: add VAT on top or absorb VAT (see the table above) | (not applicable) |
5. Recreate invoices | 🧾 Recreate revenue invoices with the correct VAT type, link to current quarter. If the quarter is already submitted or the client has already declared, use a credit note instead | 🧾 Recreate expense invoices with the correct VAT type, link to current quarter |
Need help? Chat with us or email support@accountable.eu, we're happy to help.