- VAT on debit is applicable to businesses that sell goods, not services
- VAT becomes payable when the debit is posted to the customer’s account
- Companies can choose to use VAT on debit for mixed-activity businesses
- The option simplifies accounting by consolidating VAT due on both goods and services
- Companies can submit a written request to their local corporate tax office to opt for VAT on debit
Source: stripe.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
