VAT - Difference between received and agreed fees

The due date of VAT depends on the type of accounting used. Under the procedure of agreed fees, tax becomes due at the time of invoicing, whereas with the method based on received fees, it only occurs at the actual time of cash inflow or outflow.

In the accounting for agreed fees, the owed VAT becomes due at the time of invoicing. Similarly, the input tax on purchased goods and services can be claimed at the time the supplier or service provider's invoice is dated.

In the accounting for received fees, the actual cash inflow or outflow is the decisive moment for tax assessment. Consequently, VAT on customer invoices becomes due at the time of payment receipt, while for creditor invoices, the input tax deduction can be claimed at the time of payment outflow.

The type of accounting can be chosen independently of the method used to calculate the VAT: i.e., the accounting based on both agreed and received fees can be applied whether using the effective method or the lump-sum and balance tax rate method.

Generally, according to the Value Added Tax Act, accounting is based on agreed fees. Upon request, however, the Federal Tax Administration (FTA) also allows taxable persons to account based on received fees.

From a financial perspective, the two types of accounting are equivalent, as a VAT liable person ultimately pays the exact same amount of tax in both procedures

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