I’m subjected to VAT but selected Franchisee in Accountable – What now?

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Correcting a wrong VAT type in Accountable: A step-by-step guide

Selecting the wrong VAT type in Accountable can lead to significant issues with your tax filings. If your VAT settings are incorrect, you may face the following consequences:

• No VAT return available: If your VAT type is incorrectly set, you won’t be able to submit your VAT return in Accountable, which can lead to delays and fines.

• Automatic filing errors: The SPF will now automatically file your VAT return on your behalf. If the VAT type is wrong, the automatic filing may not reflect your actual VAT obligations, leading to incorrect submissions.

Correcting your VAT type promptly helps avoid these problems and ensures compliance with tax regulations.

✨ Scenario 1: You are already late with the submission of previous quarters

Step 1: Credit note your invoices before taking any action, you need to cancel all invoices created under the wrong VAT type by issuing credit notes. These credit notes must be linked to the current quarter.

• Create credit notes for both revenue and expense invoices.

• Ensure the credit notes mirror the original invoices (without VAT).

Step 2: Upgrade your subscription to change your VAT type, upgrade your plan from Bookkeeping (GROW) to Taxes or Max.

Step 3: Change your VAT type in settings

• Go to Account > Settings > Taxes.

• Change the VAT type from "VAT Franchisee" to "Subject to VAT".

• Don’t forget to click Save.

Step 4: Contact your clients before creating new invoices, discuss corrections with your clients. Your approach may depend on what the client agrees to. You have two options:

• Add VAT on top of the original amount: The client pays an extra 21% VAT.

• Include VAT within the original amount: You absorb the VAT, reducing your net revenue.

Step 5: Recreate the invoices

• Create new revenue and expense invoices with the correct VAT type.

• Make sure these invoices are linked to the current quarter.

✨ Recap: Correcting VAT type – Scenario 1 (Late submission)

⚠️ Please check the table in step 4 for the Sales Type & VAT Impact for Scenario 1.

🕒 Scenario 2: You are not late yet with the submission

Step 1: Check the client's VAT submission frequency

• If the client is a quarterly VAT submitter: You can edit the invoice directly (after upgrading to Pro or Pro MAX).

• If the client is a monthly VAT submitter: You must credit note the original invoice before upgrading your subscription.

Client agreement As in Scenario 1, agree with the client on one of these two correction methods:

• Add VAT on top of the original amount.

  Or

• Include VAT in the original total.

Step 2: Upgrade your subscription

• Switch from Bookkeeping (Grow) to Taxes or MAX.

Step 3: Change Your VAT type in settings

• Navigate to Account > Settings > Taxes.

• Change the VAT type

Don’t forget to click Save.

Step 4: Adjust past invoices

For expenses:

• Go to expenses in the app.

• Select each invoice booked under the wrong VAT type.

• Open advanced settings, change the VAT type, and save.

For revenue tickets:

• Go to revenue > tickets.

• Select the incorrect entry.

• Open advanced settings, update the VAT type and rate, and save.

For revenue Invoices:

• Go to revenue and select the incorrect invoice.

• Click edit.

• Update your business info and VAT type.

• Delete and re-enter the items with the correct VAT type and rate.

• Save the invoice.

🕒 Recap: Correcting VAT type – Scenario 2 ( VAT submission not yet due)

⚠️ Please check the table in step 4 for the Sales Type & VAT Impact for Scenario 2.

Author - Valesca Wilms

As content marketing lead at Accountable Belgium, Valesca writes about freelancing, self-employment, and taxes based on her own experience as a freelancer.

Who is Valesca ?