Term
What is input VAT? Meaning and explanation
Input VAT (voorbelasting) is the VAT a business pays on business purchases and expenses, which it may deduct in its VAT return from the VAT it owes, insofar as it uses the purchases for taxable supplies.
Definition
Input VAT (voorbelasting) is the VAT a business pays on business purchases and expenses, which it may deduct in its VAT return from the VAT it owes, insofar as it uses the purchases for taxable supplies.
Also known as: Voorbelasting, Aftrekbare btw, Input VAT, Te vorderen btw
In the Dutch VAT return, the VAT due on sales is set against the input VAT in box 5b. The business pays or receives the difference. Deduction requires that the purchase is for business purposes, that the VAT was charged by another business or self-declared, as with reverse charge or an intra-community acquisition, and that there is an invoice meeting the invoice requirements. VAT on purchases used for exempt supplies is not deductible; mixed use allows partial deduction.
For a firm, input VAT is one of the places where errors cost money directly. Deducting too much, for example through a duplicate invoice, a receipt without a VAT breakdown or VAT on private expenses, leads to an additional assessment in an audit. Deducting too little, because an invoice was never booked, costs the client money. For exempt clients and KOR participants, the VAT belongs in the cost price instead.
Autoboeker recognises VAT on invoices and receipts, recalculates subtotal, VAT and total, and checks for missing VAT, a deviating VAT code and a deviating VAT amount. Duplicate invoices are flagged and VAT-exempt administrations are supported, for all four connected packages. For Exact Online you also see the VAT position per administration and per period in the VAT analysis.
Example
A client receives an invoice for office furniture of 1,210 euros including 21% VAT. It books 1,000 euros to fixtures and fittings and records 210 euros as input VAT in box 5b.
FAQ
Questions about input VAT.
When the purchase is for business purposes, you use it for taxable supplies and you have an invoice in your name that meets the invoice requirements.
In box 5b. It also includes VAT you self-declared under reverse charge or an intra-community acquisition and are entitled to deduct.
Further reading
Related in the knowledge base.
Guides
Automating VAT checks: how to prevent Dutch VAT errors
Automating VAT checks in pre-accounting: 21%, 9% and 0% rates, reverse charge, ICP and VIES checks, and how to catch VAT errors before the return is filed.
10 min readRead the guideWorkflowsProcessing purchase invoices: a complete guide for firms
How a firm processes purchase invoices: from intake and recognition to coding, checks, approval, booking and reconciliation. Manual, scanning or with AI.
12 min readRead the guideSee Autoboeker in your own administrations.
In a 30-minute demo, we show you how Autoboeker works with your firm's accounting software and way of working.
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