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Help, what should I do when I become liable to pay VAT?

When you start a business you are in principle liable to pay VAT: you have to charge VAT to your customers, and also pay that VAT to the tax authorities via a VAT return. Were you not previously liable to pay VAT, and you will now become liable? Or perhaps you just formed a company and you have a new company number? What do you have to do when you're liable to pay VAT? Activating your VAT number is step one.

When are you liable to pay VAT?

As a dealer, you are liable to pay VAT. So you have to charge VAT on every invoice you send to your customers. Do you have a small business, or are you a freelancer and your turnover is less than 25,000 euros? Then you are in principle liable to pay VAT, but you can request an exemption from doing a VAT declaration. Your VAT liability will then lapse, so you do not have to charge VAT to your customers. This can be interesting if your customers are private individuals. But beware: if you choose this option, you yourself will not be exempt from VAT. That means you can't recover the VAT you pay on your purchases. As soon as your turnover exceeds 25,000 euros, you automatically become liable to pay VAT. From then on, you have to charge VAT, and therefore also file the VAT return.

VAT changes

Please note: if any information held by the VAT administration change, you are obliged to report it. This is also part of what you need to do when VAT is due. For example: you have a new account number to which VAT refunds must be paid, your company moves, you delete the administrative headquarters of your company, you transfer a business department, your right to VAT deduction or your VAT activities change.