How to Process a VAT Return
Accessing the VAT Table
The option to run a VAT return is available from Current Year Menu > Nominal > VAT Table, or from the VAT Shortcut Button. If the VAT Return date is within your previous financial year, please run the return from Previous Year Menu > Nominal > VAT Table.
On selecting the above option, the system will take you straight into the VAT Table. This table will display all the VAT entries since your last VAT return. You can view the audit of all previous VAT returns by selecting the Vat Return Tab.
To re-print previous VAT returns, please visit this article.
Reporting VAT Entries
Before processing your VAT return, it is recommended to issue the required reports to fill in your VAT return. The Summary Balances by Input/Output report can be issued from the Print Button, this report will show you the totals per VAT Code, however you can also use the Detailed Vat Report if you need more detail.
The system does not print the form that you need to submit to the VAT Department; you need to use the official forms received.
Processing the VAT Return
To process (or archive) the VAT Return, click on the Vat Return Button 
(or use keyboard shortcut CTRL + R). On selecting this option, the system will display the following dialog box:
Annual Vat Account: This is the account where the system will maintain the transactions of each of your VAT Returns. Some users refer to this account as the VAT Liability Account. This account should be set as a Balance Sheet Account and used only for VAT returns. You cannot use the Vat Control Account when choosing the Annual VAT Account.
Enter Date Up to: Enter the date of your VAT Return here up to which entries the system will process, not the date when you are submitting the return. The system will pick up all the entries with a transactions date which is less or equal to this date. All other transactions with a date which is greater will remain in the VAT Table ready to be processed in the next VAT Return. For your information, the system will display the date you processed the last VAT Return.
Analysis Code (optional): This will be used in the Journal Entry once the VAT Return is completed and is used to analyze further your transactions.
When ready, click OK. The system will start processing the VAT Return. During this process, the system will perform the following functions:
- Allocate the next VAT Return number.
- Archive all entries up to the specified VAT return date. All the returns are available for re-print from the archive.
- Clear all entries from the Current VAT table.
- Automatically post the total amount of Output and the total amount of Input to the Annual VAT Account as entered above and post the contra entry into the VAT Control Account.
- Change the last VAT Return Date to the date entered above to prepare for the next return.
It is important that you run the VAT return immediately when you fill in the VAT Department Form and submit the return. In this way, you will remove the risk that users may back post into this VAT period and therefore change the period amounts.
Frequently Asked Questions
What happens if a backdated entry is Posted after the VAT Period has been closed?
The system fully supports this and will not stop users from posting into a closed VAT return unless the posting dates are set up accordingly. Any new back dated entries will be automatically captured in the next VAT Return, and no entries will be skipped. However, it is recommended to close the posting dates to stop users from posting into a closed VAT return.
Does the system support Deposits which were not allocated (on account) in the VAT Return?
When issuing the Summary Balances by Input/Output report, an option to Include totals of Unallocated Payments can be switched on.
All unallocated entries for the period should be listed in bottom part of the report.
Since these entries do not have a VAT Code tied to the transaction, they are listed separately at the bottom and do not have a 'VAT Amount'. It is required to accrue for the VAT Amount element in these Deposits/Unallocated Payments. We strongly suggest that you allocate any Unallocated Payments against Invoices where applicable.
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