Cross-Border SaaS VAT Float Impact Calculator

Diagnose how delayed VAT refunds drain cash from your cross-border SaaS business. Provide monthly gross revenue collected across EU member states, the weighted VAT rate after exemptions, the refund delay in months, and the annual cost of capital your treasury team assigns to trapped receivables. The calculator reveals the VAT float balance, annual and monthly carrying cost, the price uplift required to cover financing drag, and the cash reserve target that cushions an additional filing cycle so finance, pricing, and treasury stay aligned.

Sum of taxable subscription and usage revenue collected across EU member states each month.
Average VAT percentage after weighting each jurisdiction by revenue share and exemptions.
Months between filing and receiving the refund from tax authorities, including audit lag.
Blended cost of debt and equity you assign to trapped VAT receivables.

Outputs assume steady revenue, constant VAT percentages, and full refund eligibility. Align the figures with tax advisor guidance, treasury cost-of-capital models, and any country-specific compliance risks before adjusting pricing or liquidity policies.

Examples

  • €250,000 in monthly revenue, a 19% weighted VAT rate, a 6-month refund delay, and an 8% cost of capital ⇒ €285,000.00 sitting in float, €22,800.00 in annual carrying cost (€1,900.00 monthly), a 0.76% price uplift, and a €332,500.00 cash buffer recommendation.
  • €180,000 monthly revenue, 21% VAT, a 4-month refund lag, and a 6.5% cost of capital ⇒ €151,200.00 outstanding, €9,828.00 in annual finance cost (€819.00 monthly), a 0.46% uplift, and €189,000.00 in recommended reserves.

FAQ

Can I include VAT paid on EU expenses in the calculation?

Yes. Net your EU input VAT against collected VAT before entering the weighted percentage so the float reflects the actual receivable.

How do I handle multiple refund cadences across countries?

Compute a weighted-average delay by multiplying each jurisdiction's refund timeline by its share of the VAT receivable, then sum the results. Run sensitivity cases if a single tax authority regularly slips deadlines.

Does the tool factor exchange-rate swings?

It assumes revenue and VAT receivables are denominated in the same currency. Layer in an FX hedge or add a volatility buffer within the cash reserve if refunds settle in a different currency.

What if refunds land faster than expected?

Reduce the refund delay input to see the drop in float size and financing cost, then redeploy freed cash toward growth, term-debt paydown, or strategic reserves.

Can I compare factoring versus self-financing?

Yes. Run the model twice—once with your cost of capital and once with the factoring APR—to see when outsourced VAT recovery becomes cheaper than tying up balance sheet capacity.

Additional Information

  • VAT float equals one month's VAT liability multiplied by the refund delay, assuming steady recurring revenue.
  • Annual carrying cost capitalises the float at your weighted average cost of capital so you can compare it with term debt or factoring quotes.
  • The reserve target layers one extra month of VAT accrual on top of the float to buffer extended audits or holiday shutdowns.
  • Price uplift is shown as a percentage of gross revenue, making it simple to layer onto usage or subscription pricing models.
  • If certain markets deny input VAT, trim the weighted VAT percentage or run separate scenarios to capture partial disallowances.

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