VAT records by rate: what your bookkeeper needs and how to keep them clean
VAT isn’t paid „by feel" — records by rate must be accurate. What goes into output and input VAT, how the balance is calculated, and how to export for the bookkeeper in a click.
For a VAT payer, records aren’t a formality but the basis for an accurate tax calculation. If the rates aren’t sorted properly, you pay too much or too little — and both are a problem. Luckily, the logic is clear once you break it into parts.
Output and input VAT
Two sides make the whole story: output VAT (the tax you charge customers, sorted by the 20% and 10% rates) and input VAT (the tax you paid suppliers). The difference between the two is what you report and pay — or what stays as a credit. If you keep items with the correct tax label, this calculates itself.
Why mistakes hurt most
The most common mistake is a wrong rate on an item — something that should be 10% passes as 20% or vice versa. That carries through the whole record, the return and your work with the bookkeeper. The second is manual summing at month-end, where a line slips. A system that handles VAT automatically removes both risks. And one quiet month with a wrong rate can become an unpleasant surprise on the return.
Export for the bookkeeper in one click
The biggest time saver is exporting the bookkeeper packet in one click, instead of retyping by hand. Magaza keeps VAT records by rate and the KPO book, so output and input VAT and the balance calculate themselves — and you export it all for the bookkeeper with no retyping.
Key takeaways
- VAT records = output VAT by rate minus input VAT = the balance due
- A wrong tax label on an item spoils the whole record
- Automatic tracking + bookkeeper export remove manual mistakes
Frequently asked questions
Output is the tax you charge customers, input is the tax you pay suppliers. The difference is what you report and pay to the tax office.
By giving items the correct tax label, so the record builds itself. Then the bookkeeper export is just a click, with no retyping.
Read more
e-Invoicing in Serbia 2026: who must comply, deadlines, and how → The KPO book for flat-rate entrepreneurs: what it is, the 6M limit, how to keep it → Fiscalization for freelancers and service businesses: what you actually need →Try Magaza free
Inventory, invoicing, ledgers and VAT — a small ERP for local business.