Tax automation uses software to handle repetitive tax tasks automatically: calculating VAT, setting aside income tax reserves, and keeping your records ready for filing. Instead of manual spreadsheets and end-of-quarter panic, the right amount is reserved every time money comes in.

What is tax automation?

Running a business means juggling multiple tax obligations: VAT on sales, income tax on profits, and sometimes payroll taxes if you have employees. Tax automation tools calculate what you owe based on each transaction and move the right amount into a separate reserve, so you never spend money that belongs to the tax authority.

For businesses registered for VAT, this is especially valuable. VAT must be collected on sales and paid to the government on a regular schedule. Missing a payment or under-reserving creates stress and potential penalties.

How tax automation works

When a client pays your invoice, the automation tool identifies the VAT rate that applies, calculates the amount, and sets it aside immediately. The rest stays available for your operating expenses, salary, and savings.

At filing time, your reserve already matches what you owe. You confirm the numbers, submit your return, and pay from the reserved balance. No scrambling, no guesswork.

AutoVAT at bunq

AutoVAT is bunq's tax automation feature for Business Account holders. When you receive a payment, AutoVAT automatically calculates and reserves the correct VAT amount based on your settings. It works alongside your bookkeeping workflow and integrates with your Business Account.

Whether you are a ZZP'er, a freelancer, or a small company, AutoVAT removes one of the most tedious parts of running a business. Pair it with organized invoicing and you are always prepared when VAT filing day arrives.

Common questions

Does tax automation replace my accountant?

No. Automation handles the routine calculations and reserves. Your accountant still advises on deductions, reviews your filings, and handles complex situations. Together, they save you time and reduce errors.

Can tax automation handle different VAT rates?

Yes. AutoVAT supports standard and reduced VAT rates. Configure your settings based on the types of goods or services you sell, and the correct rate applies automatically on each incoming payment.