VAT cash accounting scheme

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This calculator lets you quantify how the VAT cash accounting scheme can affect your business liquidity.

Description

Depending on your circumstances, joining this scheme can make you have to advance or delay the payment of VAT. That more or less liquidity you have each period is quantified at present moment applying the discount rate.

Calculations are based on a number of assumptions regarding your business circumstances, including VAT ( accounting period, scheme period, VAT on purchases and sales) and economic activity (discount rate, collection or payment periods).

It is considered that both the output VAT and input VAT are distributed evenly throughout each year; ie that sales are similar every month of the year and so are purchases.

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Instructions

  1. Enter required info regarding your business taxation and activity.
  2. The financial effect of the cash scheme will appear automatically. The financial effect is calculated as the current value of the difference between the amount to be paid or reclaimed under the Standard accounting scheme and the amount to be paid or reclaimed under the Cash accounting scheme.
  3. Click “Details” to see breakdown of the effect by months.

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