VAT returns are among the worst quarterly moments for most entrepreneurs. Checking VAT codes, hunting oddities (intra-community, small-business scheme, reverse charge), and ultimately hoping you are not off by 0.05%. Meanwhile all the data sits in Exact Online — spread across screens you use once every three months.
With an AI assistant via MCP you pull the VAT position and related checks in minutes. This article: a practical VAT routine, ready for tax filing.
Pulling the VAT overview
"Give the VAT position for Q1 2026: per VAT code the total payable VAT (sales) and deductible VAT (purchases)."
The AI pulls entries via financial_transactions_search, aggregates per VAT code and gives the balance positions. The starting point for your return.
Cross-validation: revenue versus VAT
A common error: VAT booked at 21% but the revenue on a 9% account (or vice versa). The AI finds these:
"Which entries in Q1 had a VAT amount that does not match 21% or 9% of the net amount?"
An exception list. Sometimes legitimate (margin scheme, exempt), sometimes a correction worth posting.
Intra-community supplies (ICP)
Selling to EU customers with a valid VAT ID? Those are 0% (reverse charged) but need separate reporting:
"Which sales invoices in Q1 2026 were at 0% VAT to an EU customer? Give totals per country and each customer’s VAT ID."
The basis for your ICP filing. Missing VAT IDs surface as warnings — correcting in time avoids penalties.
Reverse charge (domestic)
Working in construction or similar sectors with reverse charge?
"Which purchase invoices in Q1 had reverse-charge VAT booked? Which sales invoices to subcontractors likewise?"
Special entries for special attention.
Private use and corrections
Do not forget the annual private-use correction for company car, vehicle, representation:
"Which ledger accounts in Q1 had VAT entries that potentially include private use (car, representation, phone)?"
A reminder to plan the year-end correction.
Comparison with prior quarters
Detect anomalies with simple comparison:
"Compare the VAT position of Q1 2026 with Q4 2025 and Q1 2025. Where are significant differences (above 20%) and what could the causes be?"
The AI flags sharply increased deductible VAT (a large investment) or dropped output VAT (seasonal). This avoids retroactive surprises.
Preparing the return for your accountant
Filing via an accountant? Give them a structured pack:
"Summarise the Q1 VAT position for my accountant: section 1a (output 21% NL), 1b (output 9% NL), 3a/3b (intra-community), 4a/4b (reverse charge), 5a (total payable), 5b (total deductible), 5g (net payable/refundable). Format as a table."
No manual rewrites, no typos. Clean delivery straight from Exact Online.
VAT control after filing
Return submitted. Ensure filing amounts match your ledger:
"Book the Q1 VAT return as payment or refund to the right ledger accounts. What is the movement on account 1500 VAT after the €X payment?"
Tips for a smooth VAT routine
- Do a 5-minute mini-check each week: "which entries this week had unusual VAT codes?". By quarter end there are no more oddities.
- Keep EU customers’ VAT IDs up to date — missing IDs mean 21% VAT after the fact.
- Schedule private-use corrections for December so they are not forgotten.
- Read our deeper explainer on AI accounting for more routines.
Getting started
VAT filing with AI turns the worst quarterly day into an hour of work. Follow the MCP setup guide, check the prompt library for more financial prompts, and also read accelerating month-end close with AI for the broader accounting routine.