VAT Cashflow

The VAT Cashflow module forecasts the cash flow timing of VAT settlements. It reads VAT rates from your budget accounts and revenue/cost assumptions from other modules, then calculates the VAT generated per period and the timing of settlements to (or from) the tax authority.

Global module

VAT Cashflow is a global module — it applies at the forecast level and is shared across all scenarios. Configure it once; it feeds into every scenario's Cash Flow forecast.

Why VAT matters for cash flow

VAT is collected from customers and paid to suppliers throughout the month, but settled with the tax authority periodically (monthly or quarterly). The gap between when VAT is collected/paid and when it is settled is a significant working capital item, particularly for growing businesses with large revenue volumes.

Creating the module

1. In your Forecast, click Add a budget
2. Choose VAT Cashflow
3. Follow the configuration steps

VAT configuration modes

Monitr supports two VAT accounting approaches:

Unified VAT

For businesses with a single VAT position (one line for net VAT owed/receivable):

Account	What it holds
Generated VAT account	Accumulated VAT balance (receivable or payable) during the period
Settlement account	The account used when settling with the tax authority
Reporting line	The P&L or Balance Sheet line the generated VAT maps to

Split VAT

For businesses that separate VAT receivable (from customers) and VAT payable (to suppliers):

Account	What it holds
Generated VAT receivable	VAT collected from customers
Generated VAT payable	VAT paid to suppliers
Settlement receivable	Cash received from tax authority (VAT refund)
Settlement payable	Cash paid to tax authority

Use Split VAT if your chart of accounts separates input and output VAT, or if you need gross VAT reporting.

VAT rates on budget accounts

For the module to calculate VAT correctly, every budget account that generates VAT (revenue or cost) must have a VAT rate assigned:

1. Go to Forecasts → Budget Accounts
2. Set the VAT rate on each relevant account (e.g. 21%, 9%, 0%)
3. Return to the VAT module — it now has the data it needs

The Validations page flags any budget accounts without a VAT rate.

Annual VAT periods

Define your VAT settlement calendar — the periods in which VAT is actually settled with the tax authority:

Field	What it defines
Period name	E.g. "January 2025", "Q1 2025"
Start date	First day of the VAT period
End date	Last day of the VAT period
Payment date	When the settlement is due (cash outflow / inflow date)
Refund date	If a refund is expected, when it will be received
VAT template	Optional reference to a VAT template from a prior year for comparison

Settlement frequency

For monthly VAT filers: create 12 annual periods. For quarterly filers: create 4. The payment date is what drives the Cash Flow — not the period end date.

How the calculation works

For each VAT period:

1. Sums all VAT generated on revenue budget accounts during the period (output VAT)
2. Deducts all VAT on cost budget accounts (input VAT)
3. The net balance is settled on the payment date
4. If output > input: a cash outflow is forecast on the payment date
5. If input > output: a cash inflow (refund) is forecast on the refund date

Output in reports

• Balance Sheet → VAT payable/receivable on the relevant lines (accumulated during the period)
• Cash Flow → settlement cash flows on the payment/refund dates in working capital / operating activities

No manual input is required once configured — the module recalculates automatically when revenue or cost assumptions change in other modules.