VAT and form 303 explained

Form 303 is the quarterly VAT return. The idea is simple: you charge VAT and you also pay it.

Output vs. input VAT

• Output VAT: what you charge on your sales invoices.
• Input VAT: what you pay on business expenses and can deduct.

What you pay to the tax authority is the difference between the two.

Get ready in three steps

1. Add up the VAT on invoices issued during the quarter.
2. Add up the deductible VAT on your expenses.
3. Work out the difference and file before the 20th.

Keeping invoices organised by quarter makes this calculation almost automatic.