Follow the VAT estimate

ark.flow Compta estimates the VAT you owe at the net tax rate (shown as TDFN in the app) and reminds you of each period’s deadline. The estimate is there to help you keep track: your accountant calculates the official amount.

Before you start

• You set the VAT method under Settings, VAT. See Choose your VAT method.
• With Net tax debt rate (TDFN), that screen also shows the TDFN rates block. Click Add rate, then enter a Label, the Rate (%) and the Linked revenue accounts (3xxx accounts). Tick Default rate on one rate: it applies to revenue accounts that aren’t linked to any rate.

The VAT card on the dashboard

On the Dashboard, the VAT card follows the period you are viewing:

• Next deadline: 60 days after the end of the period;
• with the net tax rate method, the Flat-rate estimate: the estimated total, the breakdown by rate and, if there are several departments, the breakdown by department;
• with the effective method, only the deadline and the note “Estimate unavailable in effective mode”.

The VAT details link opens the VAT page.

The VAT page

Open Accounting, then VAT, and choose the period at the top of the page.

1. TDFN estimation: Turnover, Estimated TDFN and Weighted average rate. When payments to the FTA are booked on account 2201, the page adds Actual TDFN (acc. 2201). Then come the Breakdown by rate and, if there are several departments, the Breakdown by department.
2. Period comparison: for each current or past period, its status, turnover, estimated TDFN, actual TDFN and the Variance between them.
3. VAT alerts: a deadline within 30 days, a missed deadline, a period in progress or pending validation.

How ark.flow calculates the estimate

• It takes the validated or auto-validated entries of the period that hit a revenue account (3xxx).
• The accounting basis chosen in the settings decides which movements count: payments received or invoices issued.
• A credit note, booked as a debit on a revenue account, reduces turnover.
• Each account gets the rate it is linked to, otherwise the default rate. Without any TDFN rate, the estimate stays empty.
• Actual TDFN adds up the payments to the FTA debited to account 2201 and subtracts refunds received from the FTA.
• By department: when at least two departments exist, the “commun” (shared) share is split equally between them.