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VAT Return

VAT Return

Contents

VAT Return

VAT Rounding

Exception Reporting

VAT Return

Selecting VAT Return displays an image of an HMRC VAT Return.

The VAT Return option provides details of your latest return. This includes:

  • Access to the VAT Return and the figures that represent the cumulative VAT from the last time you updated VAT Transactions.

  • VAT drill down buttons. By selecting one of these buttons opens an additional window that displays the transactions for the associated box on the return.

If no VAT Return has been printed and updated then all values will be zero.

Please note: If you have invoiced a SOP Detail line where Place of Supply VAT rules apply, then that transaction is not included on the standard VAT Return and does not update the VAT Return Summary.

Toolbar

Print

This opens a Print output window, where you can print the VAT Return and, if you choose to do so, update the return For full details.

XML

Select the XML button to open another output window enabling you to submit your Return directly to HMRC.

VAT Return

Each box on the VAT Return Summary is updated as specified on the VAT Rate record, where each VAT Value is based on the formula [VAT-(VAT*Recovery Rate)]. This ensures that any transactions flagged as Partially- or Non-recoverable are not included on the VAT Return. Also see the Partial Exemption VAT overview topic.

Box

Notes

Box 1

VAT due in this period on Sales and other outputs

• VAT value of all S/L and SOP Invoices and Credit Notes using VAT Codes 1 –7, 11, 12, and VAT Codes of Type A and U

• VAT value of all Credit VAT Journals and Credit VAT Journal Reversals using VAT Codes 1 – 7, and VAT Codes of Type A and U

• VAT value of all P/L and POP Invoices and Credit Notes using VAT Codes of Type V, R and X

• VAT value of all Debit VAT Journals and Debit VAT Journal Reversals using VAT Codes of Type V, R, and X

Box 2

VAT due on Acquisitions

• VAT value of all P/L and POP Invoices and Credit Notes using VAT Codes of Type A

• VAT value of all Debit VAT Journals and Debit VAT Journal Reversals using VAT Codes of Type A

Box 3

Total of Boxes 1 and 2

• Sum of value in Box 1 plus value in Box 2

Box 4

VAT reclaimed in this period on Purchase and other inputs

• VAT value of all P/L and POP Invoices and Credit Notes using VAT Codes 1 – 7, and VAT Codes of Type V, A, R, U, and X

• VAT value of all Debit VAT Journals and Debit VAT Journal Reversals using VAT Codes 1 – 7, and VAT Codes of Type V, A, R, U, and X

• VAT value of Bad Debts written off less the VAT element of Bad Debt reversal transactions

Box 5

Net VAT to be paid to Customs or reclaimed by you

• Value of Box 3 minus value of Box 4

• Always displayed as a positive value

Box 6

Total value of sales and all other outputs excluding any VAT

• Net value of all S/L and SOP Invoices and Credit Notes using VAT Codes 0, 1 – 7, 10, 11, 12, and VAT Codes of Type V, A, G, S, T, U, and X

• Net value of all Credit VAT Journals and Credit VAT Journal Reversals using VAT Codes 0, 1 – 7, 10, 11, 12, and VAT Codes of Type A, G, S, T, U, and X

• Net value of all P/L and POP Invoices and Credit Notes using VAT Codes of Type R and X

• Net value of all Debit VAT Journals and Debit VAT Journal Reversals using VAT Codes of Type R and X

Box 7

Total value of purchase and all other inputs excluding any VAT

• Net value of all P/L and POP Invoices and Credit Notes using VAT Codes 0, 1 – 7, 10, 11, 12, and VAT Codes of Type V, A, G, R, S, T, and X

• Net value of all Debit VAT Journals and Debit VAT Journal Reversals using VAT Codes 0, 1 – 7, 10, 11, 12, and VAT Codes of Type A, G, R, S, T, and X

Box 8

Total value of EC Supplies

• Net value of all S/L and SOP Invoices and Credit Notes using VAT Codes of Type A, G, or T

• Net value of all Credit VAT Journals and Credit VAT Journal Reversals using VAT Codes of Type A, G, or T

Box 9

Total value of EC Acquisitions

• Net value of all P/L and POP Invoices and Credit Notes using VAT Codes of Type A, G, and T

• Net value of all Debit VAT Journals and Debit VAT Journal Reversals using VAT Codes of Type A, G, and T

Box 8 on the VAT Return will include distance sales to unregistered Customers in another member state, irrespective of whether you have exceeded the distance selling threshold for that state. Therefore, if your sales to unregistered Customers fall below this threshold you must deduct this figure from Box 8 only.

VAT enquiries

The four drill down buttons, against items 6 to 9 on the VAT Return window, each open an additional window to display the transactions for the box associated with the button you selected.

Clicking on the Sort button opens a menu enabling you to select the order in which you would like the transactions to be displayed. When you change the method of sorting, the list will be refreshed. Sort orders include: By Account; Date; Type; Value and Audit Number.

You may print the transaction list using the Print button. An output window will be displayed so that you can select to output the list to the screen, to a printer or to file.

If using Partially- or Non-recoverable VAT, the Inputs Enquiry (lookup against Box 7) displays the values recoverable values updated to the VAT Return, and has an extra field showing the Non-recoverable element.

VAT Rounding

On all VAT calculations, whether for the total transaction value or for the detail line value, the VAT amount MUST NEVER BE ZERO.

For example: the VAT on the sale of an item worth 1p (one penny) with a VAT rate of 15.00% would be 1p (one penny).

THE RULE:

We round VAT values to nearest penny, except when this works out as being a ZERO value, then we set it to 1p (one penny).

On a 4p invoice the VAT at 15.00 is 0.60p (a sixtieth of a penny) - this is rounded to nearest penny and so the VAT value is 1p (one penny). UK and Irish VAT use this rule. VAT values are calculated this way throughout Access Accounts.

For non-GB and Irish databases only, an additional Always Round option is available on the System Options - System Format tab for VAT Rounding: this option enables you to select to round VAT calculations to zero decimal places.

VAT calculated as 0.49 will display as 0.00; VAT calculated as 0.50 will display as 1.00.

This option is not available for those with a home country of Great Britain or Ireland because the '1p rounding rule' must be applied for these countries.

Exception Reporting

VAT Return - Print - Detailed

Transactions submitted on a VAT Return where the tax date is outside the date range (or period range) for the report can be clearly identified.

For example, print a VAT Return for periods 4 to 6 which includes a transaction from period 3. The period 3 transaction will be flagged as an exception.

These transactions will be marked with a 'P' after the audit number. 'P' will be added to the legend at the end of the report and defined as Prior VAT period.

VAT Return - Print

Selecting the Print button on the VAT Return window will open an output window to enable you to print the VAT Return.

  • If your VAT Reporting Method is Period, you will be prompted to enter a period range for the transactions that will be accumulated onto the VAT Return.

  • If your VAT Reporting Method is Date, you will be prompted to enter a date range for the transactions that will be accumulated onto the VAT Return.

In addition, you can enter a VAT reference for the return and select to print a Summary or Detailed report.

Finally, you should select the output for the return: screen; printer or file and click Print to run the report.

If your VAT reporting method is Period, the VAT return window offers the selection of the periods that are to be reported on.

If your VAT reporting method is Dates, the VAT return window offers entry fields for the start and end dates for period that is to be covered by the return.

Printing a VAT Return

Printed and updated

  • If the VAT Return has not been printed and updated before, this will be shown clearly stated on the window.

  • If a VAT Return had been printed and updated the window would indicate this:

The VAT Return was updated from transactions

1 Current Year to 3 Current Year

This information is provided because you should always report consecutive periods that immediately follow the VAT periods that you have already reported and have updated. This is true whichever VAT Reporting Method you have chosen.

  • When you print the VAT Return to a Printer, you will have the option to update the VAT Return. If you select to update the return, the system will store the period range or date range you have reported and this will be displayed the next time you open the VAT Return print window.

  • When using Period - VAT Reporting Method, you can report on period ranges from Last, Current or Next Years, if they have not already been reported and updated.

  • When using Date - VAT Reporting Method, the same rules apply. You can report on date ranges covering Last, Current or Next Years if they have not already been reported and updated

  • Take care not to report on periods or dates that have been reported before and do not report on periods or dates where further transactions may be entered. You will be allowed to do this, but a warning message will be displayed.

  • If you select to print a New VAT Return which includes dates which have already been updated then only new transactions which have not been updated to the VAT Return which fall earlier than the ‘to’ date will be printed on the VAT Return.

  • Transactions with a tax date that is outside the period or date range for the return will be identified on the detailed report as prior period transactions.

VAT Reference

By default this will be the date of the last day covered by the period or date range you have selected. This can be changed to any unique reference that will identify the return.

  • This is a required field.

  • The VAT Reference will be written to each transaction that is included in a New return (see below).

  • The VAT Reference can be used for selection purposes when reprinting a return (see below).

  • Transactions that have not been included in a return will not have a VAT Reference and so can be identified as being unreported.

New / Reprint...

This button menu below the period/date entry fields, enables you to choose between printing a New return or Reprinting a return.

  • A new return will only include transactions that have not yet been given a VAT Reference.

  • A reprint will include all transactions that have a VAT Reference that matches the one you enter.

There are two options on the Reprint menu:

Reprint VAT Return (with reference) - a field will be provided so that you can enter the VAT Reference for the return you want to reprint.

Reprint VAT Return (without reference) - this option is provided to enable you to reprint returns from upgraded data. All transactions previously reported from Access Accounts should have a VAT Reference.

Summary or Detailed

You may select to produce either a Summary or a Detailed report.

Summary report produces a one page report, summarising inputs and outputs over each of the available VAT Rates, followed by the VAT Return.

Detailed report prints an audit trail of all transactions that have updated the VAT Return, followed by the VAT Return.

If you have a very high volume of transactions, the printing of the Detailed report may fail if you attempt to preview it (print to screen). Printing to a PDF file and then viewing the file is a more efficient way of previewing large returns. If you don't need the detailed report, use the Summary report to print and update the return.

To print the return to a PDF document:

  • Select printer as your print output destination.

  • Open the Page Setup window from the File Menu and select your PDF printer.

  • Click OK on the Print Setup window and Print on the VAT Return window.

Notes

  • All transactions that have been entered in the system with a VAT Code will be reported.

  • Care should be taken when posting Nominal Journals that contain VAT to ensure you use the option for VAT Journals so that they are included here.

  • Please note that it is your responsibility to ensure that all transactions are correctly reported to H.M. Revenue & Customs.

Updating the VAT Return

Each time the VAT Report is sent to Printer, rather than to screen or file, the system displays a message asking if you wish to update the VAT Return.

If the report has printed correctly and you are ready to update the return, you should ensure that you select YES to this message.

The transactions that have been included in the report will be flagged as having been reported and they will be excluded from any future VAT Returns.

Reverse Charge Sales List (RCSL)

When you print and update your VAT Return, if any sales using Reverse Charge VAT have been made during the period covered by the return, you will be prompted to create the Reverse Charge Sales List export file.

This will be created in your My Documents\DimensionsHorizons Reports folder unless you browse to a new location.

A suggested file name will be provided but you can rename this file if you wish.

You will then be able to upload this file to HMRC via the Government Gateway as an RCSL submission.

If you prefer, the Reverse Charge Sales List can be produced as a printed report from the Access Crystal Reports option on the VAT menu. You can then make your submission manually by posting the figures using a web form via the Government Gateway.

VAT Return - XML

For the XML button to become available, you need to ensure you have carried out the following actions:

Register with HMRC

You must register with HMRC and obtain a User Name and Password to transmit documents to HMRC by XML. You can do this via HM Revenue & Customs at http://www.hmrc.gov.uk/online/index.htm

Enter your User ID and Password

The User ID and Password, issued when you register with HM Revenue & Customs, should be entered on the Comms tab of the Company Details window. This will enable Access Accounts to connect for communications.

Set the XML Format for the VAT Return

You need to set up an XML format for 'VAT 100 online' as follows:

Open the System Options window.

Go to the Documents tab and open the XML Formats window.

  • Click on the Import formats icon.

  • Select the 'VAT 100 online' format:

  • The template will be examined and processed and the result will be displayed.

  • If successful, you may just close the results window and click Accept.

  • If the import fails, copy the information from the results window to your clipboard so that you can paste it into Notepad or Word and print it for reference. You will need to contact your support provider for assistance.

  • When you close the results window, you will be returned to the XML Formats window.

  • The VAT Return format should be visible in the list of imported formats.

  • The format will be active and cannot be edited or deleted.

Update your VAT Return Figures

Your VAT Return figures must have been printed and updated using the VAT Return window.

Note: you will need a working Internet connection.

Submit VAT Return Online

You are able to submit your VAT Return online to HM Revenue & Customs (HMRC) by clicking on the XML button on the VAT Return window. This button is only available where certain conditions are met.

HMRC Requirements

From April 2010 all businesses with a turnover in excess of £100,000 and all new businesses must file their VAT 100 online. The Submit VAT Return Online window enables you to send all your details online directly to HMRC via HMRC Online Gateway Services.

Submit VAT Return Online Window

Selecting the XML button on the VAT Return window will open an output window to enable you to send your VAT Return to HMRC.

Submit as a test check box - click on the check box to submit your VAT Return as a test. This will enable you to check whether or not your submission to would have been successful. Leave unticked to submit directly to HMRC.

  • If your VAT Reporting Method is Period, details about the period range of your last updated VAT Return is displayed. <From Period > to <To Period> displays the Year and beginning Period and Year and the end Period of the last updated VAT Return.

  • If your VAT reporting method is Date, the VAT Return Online window displays <From date> to <To date> showing the start and end dates that are covered by the return.

OK - click on this button to submit the VAT Return to HMRC using the Online Gateway. If the test check box is selected then it is sent as a test. If a response is received within the polling time of 2 minutes, the Gateway Response window is displayed where you may check the response. Note that you can check your responses from HMRC at any time. Please see Gateway Response window.

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