Simplify Your Bookkeeping

VAT (Value Added Tax) is a tax that we all pay when purchasing goods and services. VAT is often included in the price and therefore nothing private individuals need to think about. As an entrepreneur, however, you must declare and pay VAT. Aside from companies with VAT-exempt operations, all companies must report and pay VAT to the Tax Authority. Paying VAT can in this case also mean that you get money back from the Tax Authority. What is input VAT? Input VAT is the tax on the goods and services you purchase for your business, and it is the VAT the company has the right to get back. The input VAT is therefore not a cost for you as an entrepreneur. What is output VAT? Output VAT is a tax calculated based on the sales amount of goods and services. The VAT is then paid to the Tax Authority when the seller has received payment from the buyer.

Tax is a mandatory fee that individuals and companies pay to the state. Taxes fund public services such as healthcare, education, infrastructure, and social security systems. For companies, there are different types of taxes such as corporate tax, VAT, employer contributions, and withholding tax. It is important to understand which taxes apply to your company and when they must be paid to avoid late fees.

Employer contributions are fees that employers pay to the state based on employee salaries. The contributions fund pensions, health insurance, and unemployment insurance, among other things. The total employer contribution is approximately 31.42% of the employee's gross salary. As an employer, you must declare and pay employer contributions every month to the Tax Authority.

Preliminary tax (A-tax) is the tax deducted from employees' salaries each month. As an employer, you are obligated to make tax deductions on salary and pay this tax to the Tax Authority. The A-tax is based on the employee's tax table and is calculated automatically from the gross salary. The tax deduction is made before the salary is paid out to the employee.