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Working with VAT Returns

VAT Returns (i.e. the VAT100 form) can be generated automatically.

If all purchases and sales were entered using the Transactional Documents, and the correct Tax Codes in the associated Line Items have been used, a correct VAT Return Document from the HMRC Tax Authority Document can be generated.

Once a VAT Return has been generated and you are happy with the figures it can be Filed.

NOTE:

After filing a VAT return all associated Documents, such as Invoices and Bills will be locked. You will not be allowed to modify (i.e. edit) the Documents. This is to preserve the integrity of the filed VAT Return, and the underlying transactions.

When the VAT Return is Filed either a Bill or Invoice will be generated automatically depending on whether you owe or are owed money from HMRC. These Documents can be viewed under the Transactions tab on the HMRC Document.

How to create a new VAT Return

  1. From the Explorer select Accounting-> Tax-> Tax Authorities.
  2. The list of Tax Authorities will display
  3. View the HMRC Tax Authority by selecting View view
  4. From the Bar click ‘New VAT Return‘.
  5. A page from where you create the new VAT Return will be displayed (shown below).

Creating a new VAT Return

Creating a new VAT Return

NOTE:
The new VAT page automatically defaults to your current VAT period. To set your VAT period, and other options, such as cash or accrual schemes, see Configuring VAT.

If you have any unfiled transactions from previous periods they can be included in this return by ticking the checkbox ‘Include unfiled transactions from previous periods’.

The new VAT Return is shown below. It is similar to the VAT100 form supplied by HMRC, which makes it easy to complete the form to send to HMRC.

New VAT Return Document

New VAT Return Document

The newly created VAT Return has the status of NOT FILED. Adjustments to the underlying transactions can still be made, or new ones created until satisfied with the figures.

NOTE:
By clicking on the underlined figures you can view the associated transactions in a detailed report.

USEFUL TIP:
To view, modify or create Transactional Documents that contribute to you VAT Return, first bookmark the VAT Return by clicking the star star icon. Then easily return to the VAT Return once the modifications has been completed.

How to File the VAT Return

Once content with the VAT Return figures, select ‘File Return’ on the VAT Return’s Action Bar.

Filing a VAT return

Filing a VAT return

Filing the VAT Return has two effects:

  1. All associated Transactional Documents, such as Sales Invoices and Bills, are locked.
  2. They cannot be subsequently edited (see below) and the integrity of the underlying documents is preserved.

Locked Document message

Locked Document message

NOTE:
From a locked Document you can view the associated VAT Return.

If the VAT Return indicates that you owe money then an associated Bill Document will be generated.

Conversely if you are owed money by HMRC then a Sales Invoice Document will be created.

These Documents can be viewed under the Transactions tab on the HMRC Tax Authority Document as shown below.

Viewing HMRC Transactions

Viewing HMRC Transactions

NOTE:
If you have Filed a VAT Return but have made a mistake and want to edit some filed Documents you must delete the associated VAT Return. You can then edit the Document and create/file a new VAT Return.

How to view previous returns

To view previously created VAT returns, filed or unfiled, select ‘Find‘ and then ‘VAT Returns‘ on the HMRC Document.

Also Read About


Configuring VAT
Working with HMRC (UK Specific)
Working with Tax Authorities
Working with Tax Codes