Until December 31, 2020, there was an industry covenant between the Tax and Customs Administration and the Florist-Winkeliers Association. This covenant has been withdrawn. Since 1 January 2021, florists can therefore use 1 of the 3 fixed-rate calculation methods prescribed in Article 16 of the 1968 VAT Implementation Decree.
Are you a florist who is allowed to apply the cash system? And are you unable to determine on the basis of your administration which part of the receipts relates to deliveries of 9% goods and which part to deliveries of 21% goods? Then you may use 1 of the fixed calculation methods. You must report your choice to your tax office .
The chosen method must be applied up to the (financial) year following the year of written cancellation.
3 calculation methods
The 3 different methods in short:
- Method 1: the receipts are split according to the different rates. This is done on the basis of the purchases of the goods subject to those rates, reduced to retail value. The purchases must then be converted to the retail value. This also applies to the ratio of goods taxed with 9% and 21% VAT. This ratio is then used to determine the VAT due.
- Method 2: for groups of goods subject to the same rate, the receipts are set as the purchases of those goods reduced to retail value. The remaining part of the receipts is allocated to the goods belonging to the other tariff group.
- Method 3: for all goods, the receipts are set at the retail value of the purchases of the goods, broken down by the applicable rates.
More information
View article 16 of the Turnover Tax Implementation Decree 1968 .
Source: belastingdienst.nl
