Accounts Receivable on the Balance Sheet

The ‘Unpaid VAT’ section on the balance sheet shows the sales tax amount calculated in the Q4 VAT report as the total amount to be paid to the Belastingdienst. The amount of ‘Unpaid VAT’ is always €0 as long as you have not yet calculated the Q4 VAT report.

After calculating the Q4 VAT report, you have an amount to pay (positive), or an amount you can reclaim (negative). The Q4 VAT report is calculated at the end of every year, but not paid until the beginning of the following year. As a result, the calculated amount of the Q4 VAT report is shown as a short-term debt (liability) on the balance sheet.

For the unpaid VAT amount on the balance sheet, the same principle goes as for invoices that are paid in the following year. The reason for the short-term liability is that your calculated Q4 sales tax will also not be paid until the following year. Therefore, the amount shown on the Balance Sheet is shown as ‘Unpaid VAT’.

The following is a tip and not advice. When in doubt, please consult a tax specialist.

The calculated amount of ‘Unpaid VAT’ from Q4 can be copied for the income tax return. On your income tax return you have a section which deals with the balance sheet. Under the balance sheet you have assets and liabilities. Your ‘ Unpaid VAT’ falls under the section liabilities. In the income tax return, under liabilities, you will see a section for current liabilities. Under the current liabilities section you will find the Sales tax (Unpaid VAT). You can copy the calculated amount from the Q4 VAT report for the ‘Sales Tax’ section on your income tax return.