How does input tax work if I have partly untaxed turnover?
Some customers have both taxed and untaxed sales. This is the case, for example, if you are a teacher or journalist, have a CRKBO certification or a funeral arranger.
Overhead expenses
We make a correction for expenses that are for both your taxed and untaxed turnover, namely; non-deductible input tax.
If supposedly 50% of your turnover is exempt, 50% of your turnover is taxed. Then you may reclaim 50% of the input tax on these overhead expenses. These are costs that you incur for your company, so that they are not specified to a part of your activities. Examples are your Bookie subscription, telephone costs and office costs. The Bookies will make a correction for you every quarter.
Specific costs
However, your expenses may be for a specific part of your work. For example: you teach minors, so your turnover is untaxed. You may not have any further expenses for this.
However, you may actually incur costs for your taxed turnover. So if you also sell lemonade with the catering part of your sole proprietorship, then you can reclaim the VAT for the purchase of lemonade and for example plastic cups. This will not be corrected.
Indicate in the web app
So if you have an expense that belongs to taxed turnover, please indicate this in the description in CAPS so that we see this when we check your administration: "LINKED TO TAXED REVENUE".
At the end of the year, when we are preparing your annual accounts, we do a revision of the VAT. Perhaps it is more favorable in your situation to calculate the ratio of taxed / untaxed turnover per year instead of per quarter.