Set Up and Understand the VAT Overview

Before Billance calculates a VAT payable, configure VAT for the current business profile. The settings are stored per profile and sync between your devices.

Required setup

• VAT status: standard VAT treatment or the small-business exemption under Section 19 UStG
• Accounting method: accrual accounting or cash accounting authorized by the tax office
• Effective from: the date from which Billance applies the stored rule
• Input-tax deduction: use the share stored on each receipt or apply no deduction
• Advance returns: monthly, quarterly, or exempted by the tax office
• Permanent deadline extension: enable only when it is effective

Accrual accounting normally assigns output VAT to the supply date. Advance payments received beforehand are assigned to their payment date. With configured cash accounting, recorded incoming payments determine the period.

Metrics and details

Billance shows output VAT, deductible input tax, and the calculated difference. A negative result is displayed as a calculated credit. Detail cards separate standard VAT rates, reverse charge, intra-Community transactions, and imports.

For small businesses, Billance does not calculate regular output VAT or deduct input tax. Special tax cases can still create filing obligations.

Data quality and currency

The page highlights missing VAT breakdowns, restricted input-tax deduction, VAT shown despite small-business status, periods before the stored effective date, and foreign-currency entries that have not been converted. A German VAT payable is displayed in EUR only. Foreign-currency entries are never added nominally to EUR and remain excluded until a documented statutory conversion is available.

Important context

This page is a supporting calculation based on data recorded in Billance, not an advance VAT return or tax advice. Review special cases, corrections, foreign currencies, and eligibility for input-tax deduction with your tax adviser. The VAT overview is part of Premium.