Glossary
Output VAT
Definition
Output VAT is the VAT the company charges its customers on its sales. It is collected for the state and reported in the VAT return. It is added up for each period before input VAT is subtracted.
Example. Sales invoices of €1,000 plus €240 VAT in a month give €240 of output VAT for that month.
Why it matters for your company
Output VAT is money you hold for the state, not income. Setting it aside each month avoids a cash shortfall when the KMD falls due.
Where you see it in Sapita
On each sales invoice line, and in the output VAT line of the KMD.