Automated VAT/tax filing

Automated VAT or tax filing means the software works out the figures for your VAT return from your recorded sales and purchases, and sends the return to the tax authority directly. You review the numbers and approve them, without retyping anything into a government website. Exact Online and Moneybird are examples of tools that offer it.

VAT returns are a fixed deadline with penalties for being late or wrong. Doing them by hand means exporting figures and copying them across, which is where mistakes creep in. Direct filing saves time every quarter and leaves a record of what was sent. It matters most to businesses that must file regularly. Tax rules vary by country, so a tool that files in one country may not do so in another, and special schemes may not be covered.

• Ask which countries and which kinds of return the tool can submit, not just calculate.
• Check whether it supports the VAT scheme you use, such as a flat rate or a cash basis.
• Find out whether your accountant can review and approve the return before it goes out.
• Confirm that a copy of the submitted return and the proof of filing are stored.