VAT - Reporting and VAT Returns
In addition to the basic VAT return (VAT100) and EC Sales List Return (VAT101) specific reports are available to assist in understanding and supporting the VAT returns.
- VAT 100 Report
- VAT 101 (EC Sales LIst)
- VAT Transactions Report
- Transactions by VAT Code Report
VAT 100 Report
A VAT 100 report format provides the basic information for completing the return to the HMRC. In most cases there will not be any necessity to make any amendments to the figures. The report is accessed via the VAT menu
VAT Return (VAT 100)
A report can be run at any time, but it is only after a VAT period end date has passed that the opportunity to accept (and therefore close the VAT period) will be available.
After the period end date the report will invite you to ACCEPT the report. The form will be populated with the data that system has available. In most cases this will be correct. However if adjustments are necessary, make them in the second column as a positive or negative incremental change; a record of the amendment is then retained for when the report is printed out again in the future.
Accepting the VAT100 means that the system rolls over to the next VAT accounting period, and all the transactions included in the report are flagged as VAT reconciled.
Finally the amount of the VAT due to or from HMRC for the relevant VAT period is moved from the VAT Control Account to the VAT Liability Account.
A copy of the report can be printed and It is possible to reverse the acceptance of the last report (only the last report, prior reports are in a locked condition) via the HMRC menu. Note if the report was filed online, reversal is not possible.
HMRC - Reports - View Saved VAT Return Reports
Deleting a VAT return re-sets the status of everything to the pre-acceptance condition.
Other than the VAT 100 Preparation activity (see above), all other VAT reports are available from the HMRC Reports menu.
HMRC - Reports
The system defaults to the date range for the current VAT period, if you need a report for other periods or covering multiple periods modify the dates as required and GENERATE.
VAT 101 (EC Sales List)
EC Sales List is required quarterly (or monthly) if chargeable (subject to VAT, usually zero rated) supplies have been made to customers in European Union Countries. Provided the user has set up the details of VAT registration number (and indicated that it has been validated on the customer maintenance screen for the relevant customer) and country of the EU customer, a list can be prepared and online filed via the VAT menu.
HMRC - VAT EC Sales List (V101)
Details of the ECSL are presented for review; any necessary amendments to Type may be made. Click SUBMIT to prepare and file the report.
A copy of the report can be accessed from the HMRC menu.
HMRC - Reports - View Saved EC Sales List Returns
VAT Transactions Report
This report details all VAT transactions recorded by the system. The system defaults to the end date of the current VAT period and selects Current mode. The report will then display all VAT transactions for the current period: quarter, month or year depending on the configuration.
Clicking the Historic Mode box will allow the selection of reports consistent with previous closed VAT periods from the drop down box. Each will report will show those transactions included in a VAT 100 return by the system. Transactions that were corrections (such as a late entry) will appear in the report of the period in which they were included in a VAT 100 even though dated in a different VAT period.
The All Trading Up To option, which will require the user to enter a valid VAT period end date, is a report that will display all VAT relevant transactions from commencing using the system up to and including the selected date. In effect a history of all entries to the VAT control Account, not necessarily what has been reported on VAT100 returns if the entity is using the cash scheme.
Transactions by VAT Code Report
This report is similar is the transaction report, except that transactions are shown under the VAT code used. It is useful for reviewing accuracy of VAT recording and the nature of VAT transactions undertaken by the enterprise, i.e. how much of the business is exempt trading.
Annual Accounting Scheme
If you are using the Annual Accounting Scheme you will have made instalment payments. You will need to enter on the VAT100 any balancing payment amount required to fulfil the actual liability.
If you choose to pay your VAT by nine monthly instalments, each payment will be 10 per cent of the total amount of VAT you paid to HMRC in the previous year, or 10 per cent of the estimated total annual amount of VAT due to HMRC if you have been registered for VAT for less than 12 months. Your payments will be due by the end of months 4 to 12 of your annual accounting year. If you choose to pay your VAT by three quarterly instalments, each payment will be 25 per cent of your previous year's VAT liability, or 25 per cent of your estimated VAT liability if you have been registered for VAT for less than 12 months. Your payments will be due by the end of months 4, 7 and 10 of your annual accounting year. The balance of your actual VAT payable for your annual accounting year, based upon the VAT Return that you complete at the end of the year, is due two months after the end of your annual accounting year.
Annual returns are completed in exactly the same way as quarterly returns, except that after calculating the annual VAT payment due, you deduct the interim payments you have already made to arrive at your end-of-year balancing payment due to you or HMRC.
Completing the VAT return and paying any VAT liability
- Run the VAT 100 report, VAT transactions reports and EC Sales lists report (if necessary)
- Satisfy your-self that all information is correct.
- Transfer the data from the VAT 100 report to your VAT return.
- Prepare a payment transaction for the liability.
- Ensure that the account is the VAT Liability Account and the amount to be paid is shown in the Net field.
- Select Out of Scope as the VAT code. The VAT field must be zero, because the payment of VAT has no impact on the VAT itself.
The use of online filing of VAT returns is efficient and saves time, it can also reduce the possibility of errors, and we commend it to you. It is quick and easy to set up. See the guide below.
VAT Refunds
If you receive a VAT refund from HMRC use a Receipt transaction selecting the VAT Liability Account as the account.