How Qonto simplifies your VAT returns

VAT (or Value Added Tax) is the indirect tax included in the selling price of goods and services. If companies collect it on behalf of the State, it doesn’t qualify as a cost and there’s no need to mention it on your profit and loss accounts. That’s why when it is time to report your VAT, you need to understand the difference between output, deductible and paid VAT, since how you declare and pay your VAT to the State depends essentially on your company’s tax regime.

Only receipts and invoices containing information on the VAT rate(s) applied will allow you to calculate the paid VAT: by deducting the paid VAT from the VAT collected on behalf of the State.

While invoices and receipts should normally include the name of the company to ensure that deductible VAT is recovered, certain receipts such as restaurant invoices or parking tickets are exceptions.

Receipts for your employees' expenses no longer need to end up in a ball at the bottom of a back pocket. Especially since you’re required to keep the original versions of these documents in the event of an audit.

Let's face it, doing your accounting and VAT balance sheet doesn’t spark joy. It’s even less the case if it means having to chase down all the receipts for your employees' expenses. Now with Qonto, all your employees need to do is go into their mobile app to attach receipts to their transactions - and, if applicable, determine the (deductible) VAT rate.

Companies subscribed to a Basic plan can select and enter the VAT rate and amount indicated on the transaction receipt. Those with a Smart or Premium plan have automatic VAT detection included in their plan: they just scan and add their receipt to the app, the Qonto algorithm identifies the applicable VAT rate and presto - they just need to confirm the rate and it’ll appear on your accounting export.

Save time. For you and for your entire team.