What is VAT-exempt administration? Meaning and explanation

Some services are exempt from VAT by law, for example medical care by registered healthcare providers, certain types of education, childcare and financial services. A business that only provides exempt services charges no VAT and has no right to deduct input VAT. The VAT on purchase invoices therefore becomes part of the cost. Mixed situations also exist, where part of the activities is taxable.

For a firm, a VAT-exempt administration requires a different way of booking. A standard purchase entry with deductible VAT is wrong here: the VAT belongs in the cost price. A firm serving many different clients has to know per administration whether the client is exempt, taxable or mixed, or errors in costs and VAT arise that only surface at year-end.

Autoboeker supports VAT-exempt administrations as part of its VAT and compliance checks, for all four connected packages. The AI assistant's prompt library contains example instructions for VAT exemption, and with administration rules you record how a specific exempt client should be booked. You can also add your own context, such as the client's sector and core activity.