How to Manage VAT

In this guide, we show How to Manage VAT in the Finance Module.

This Guide forms part of the ACCOUNTS PAYABLE USER GUIDE. Click to see Related Guides.

This guide covers six areas:

How to Set Up VAT Rates
How to Set Up VAT Reporting Periods
How to Set Up a Supplier for VAT126 Reporting
How to Create a VAT Report
How to Submit a VAT Return
How to Set Up Making Tax Digital

Access: The minimum permissions required to Manage VAT are found in the Finance Module section Config > Setup > Roles & Permissions.

Here:

And here:

Related Guides:

How to Set Up VAT Rates

To begin, go to Modules > Finance > Finance Home Page > Maintenance > VAT Rates & Periods.

The VAT Rates are displayed at the top of the page.

Note: Ledger Group is for the Summation of the Amounts Owed/Payable in the Balance Sheet.

Double clicking on a line allows for the adding of an End Date, for the editing of the Description, and/or for the changing of the Ledger Group. Click Save to Save any changes.

Clicking on New allows for the addition of a New VAT Code.

Complete the details in the pop-up and click Save.

To Delete a VAT Code, select the line to be Deleted and click Delete.

To view the History of a VAT Code, select the line to be Viewed and click History.

How to Set Up VAT Reporting Periods

Note: Do not, under any circumstances, set up the Last VAT Period of a VAT Year to end before the VAT Year ends. The system does not accommodate a Last VAT Period close before the end of the VAT Year. Please advise your LA of this.

The VAT Year section sits underneath the VAT Rates section on the VAT Rates and Periods page.

To view a VAT Year, double-click on the required year.

The information about the VAT Year is displayed.

To create a New VAT Year, click New.

Enter the required information. It is possible to choose the frequency of reporting. Click Save to Save the New VAT Year.

How to Set Up a Supplier for VAT126 Reporting

Go to Modules > Finance > Accounts Payable > Suppliers. On the Supplier page, there is a box for Brief Services Description. This is used for a VAT 126 Report, where a description of the goods and services supplied is required.

How to Create a VAT Report

VAT Returns are made by using the VAT Submittal Process. The idea is that VAT Reports are run off for the period and then, once checked and finalised, Submitted. This guide looks at the VAT Reporting process and the VAT Submittal Process separately.

Go to Modules > Finance > Finance Home Page > Reports > VAT Reporting.

This will show all previously generated VAT Reports, their VAT Period, VAT Start Date, VAT End Date, and any Submit Dates and Confirmed Dates.

To open a previous VAT Report, double-click on a previously generated line. Choose which type of VAT Report to run. This does not resubmit the report.

To create a New VAT Report, click Create.

This then gives the option to create a VAT Report for the next available Period. Choose which Report to run.

VAT Report Types:

VAT Reconciliation: Produces all the transactions within the report to cross reference with the Chart of Accounts
VAT Full: Shows VAT Transactions in full showing Gross and Net amounts, with a Summary showing VAT Rates and amounts
VAT Short Summary: Gives a Summary only, showing VAT Rates and amounts to reclaim
VAT Long Summary: As VAT Short Summary, but summarises Transactions at a Ledger Code level

The selected Report can be Previewed, Scheduled, or Exported. The Export can be produced in a variety of output formats, such as Excel or PDF.

There is an additional reporting option to select the VAT Only or VAT and Net format. VAT and NET format can be chosen to facilitate data checking.

How to Submit a VAT Return

When ready to Submit the VAT Return, choose the VAT Submittal radial button (or the VAT 126 radial button if that is required) and click Confirm.

Note: Data can only be submitted once. Ensure it is correct before Submittal.