Republic of Ireland VAT Cash Accounting scheme

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Solution ID:

220128150120580

Last Modified Date:

Wed Feb 05 15:00:53 UTC 2025

Taxonomy Path:

Case category//How do I...//governmental/legislative compliance

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Republic of Ireland VAT Cash Accounting scheme

Description

Many businesses using Sage Accounts are VAT registered which means that each month or quarter they must produce and reconcile their VAT Return.

For further information about VAT, refer to the Revenue website.

Cause

Resolution

The VAT Return

If you haven't already started your VAT Return, you can find out everything you need to know in our Help Centre.

How the VAT Return calculates

Box	Details	Tax codes included	Transactions included
	VAT charged on supplies of Goods & Services.	T0, T1, T2, T3, T6, T10, T11, T12, T13, T14, T16, T19, T20, T21, T24, T27, T28, T31, T32, T35, T36	SR, SA, BR, VR, CR, SP, JC
	VAT due on intra-EU acquisitions.	T8, T18, T25, T26, T29, T30, T33, T34, T37, T38, T30 - T50	PI, PC, PP, BP, VP, CP, PR, JD
T1	Total VAT due, therefore the total of boxes 1 and 2.	N/A	N/A
T2	Total VAT on purchases.	T0, T1, T2, T3, T6, T8, T10, T11, T12, T13, T14, T16, T18, T19, T20, T21, T24, T25, T26, T27, T28, T29, T30, T31, T32, T33, T34, T35, T36, T37, T38, T39 - T50	PI, PC, PP, BP, VP, CP, PR, JD
T3	Net Payable.	Excess of T1 over T2	Excess of T1 over T2
T4	Net Repayable.	Excess of T2 over T1	Excess of T2 over T1
E1	Total goods to other EU countries.	T4	SR, SA, BR, VR, CR, SP, JC
E2	Total goods from other EU countries.	T5, T7, T8, T15, T17, T18, T25, T26, T29, T30, T33, T34, T37, T38	PI, PC, PP, BP, VP, CP, PR, JD
ES1	Total services to other EU countries.	T22	SR, SA, BR, VR, CR, SP, JC
ES2	Total services from other EU countries	T23, T24	PI, PC, PP, BP, VP, CP, PR, JD
PA1	Value of goods imported under Postponed Accounting (net plus carriage, insurance and freight (CIF))	T39 - T50	PI, PC
For information only:
	Total value of sales, excluding VAT.	T0, T1, T2, T3, T4, T6, T10, T11, T12, T13, T14, T16, T19, T20, T21, T22, T23, T24, T27, T28, T31, T32, T35, T36	SR, SA, BR, VR, CR, SP, SD, JC
	Total value of purchases, excluding VAT.	T0, T1, T2, T3, T5, T6, T7, T8, T10, T11, T12, T13, T14, T15, T16, T17, T18, T19, T20, T21, T23, T24, T25, T26, T27, T28, T29, T30, T31, T32, T33, T34, T35, T36, T37, T38, T39 - T50	PI, PC, PP, BP, VP, CP, PR, PD, JD

TIP: Need more help on transaction types, view our guide.

Confirm the figures on the VAT Return

Once you have calculated your VAT Return, you can click the value you would like to see a breakdown of. If you'd like to see the included transaction then double-click the value.

You can then use the reports to confirm the figures in each of the boxes on the VAT Return. Click the relevant box below to see which reports you need to run to confirm the values are correct.

NOTE: All of the reports are in Reconciliation reports > Reconciliation reports > VAT Cash Accounting.

VAT charged on supplies of Goods and Services

The value in box 1 should agree with:

	The VAT amount of the transactions on the Day Books: Customer Receipts (Detailed) report.
Plus	The VAT amount of the transactions on the Day Books: Bank Receipts (Detailed) report.
Plus	The VAT amount of the transactions on the Day Books: Cash Receipts (Detailed) report.
Plus	The VAT amount of the transactions on the Day Books: Credit Card Receipts (Detailed) report.
Plus	The value of any journal credits posted to the Sales or Purchase Tax Control Accounts with a vatable tax code. NOTE: You can check which journals are posted to these control accounts by running the Day Books: Nominal Ledger report.
Plus	The VAT value of T20 reverse charge invoices and T24 invoices when they are linked to T1. NOTE: There is no standard report to show these values, we recommend you click on the T20 and T24 boxes on the VAT Return to check the transactions. If you want to create a report to show these values, we recommend you use the T9 Transaction Listing report and amend it to show the T20 and T24 transactions. For more information about how to amend this report, please contact the Sage Report Design Technical Support.
Less	The VAT amount of the transactions on the Day Books: Customer Payments (Summary) report.

Why the values may not agree:

You've made manual adjustments. To view or amend manual adjustments from the VAT Return window > Reconcile VAT Return > Make adjustments.
You've used different date ranges when calculating the VAT Return and running the day books reports.
You've excluded one or more of the bank accounts from the day books reports.
You've entered a VAT amount transaction where the tax code isn't included on the VAT Return.
You've included unreconciled transactions from before the specified VAT period on the VAT Return but they aren't included in the day books reports.

VAT due on intra-EU acquisitions and postponed VAT

The value in this box is the notional VAT calculated on T8 transactions when T8 is linked to T1. This figure should be 23 % of the value of your T8 transactions.

NOTE: Note: Notional VAT is just for Revenue reference purposes only and doesn't affect the amount of VAT you have to pay.

[T1] - Total VAT on Sales

This is the sum of box 1 plus box 2.

[T2] - Total VAT on Purchases

The value in this box should agree with:

	The VAT amount of the transactions on the Day Books: Supplier Invoices (Detailed) report.
Less	The VAT amount of the transactions on the Day Books: Supplier Credits (Detailed) report.
Plus	The VAT amount of the transactions on the Day Books: Bank Payments (Detailed) report.
Plus	The VAT amount of the transactions on the Day Books: Cash Payments (Detailed) report.
Plus	The VAT amount of the transactions on the Day Books: Credit Card Payments (Detailed) report.
Plus	The value of any journal debits posted to the Sales or Purchase Tax Control Accounts with a vatable tax code.
Plus	The value of T20 reverse charge transactions and T24 transactions when they are linked to T1.

Why the values may not agree

You've made manual adjustments. To view or amend manual adjustments from the VAT Return window > Reconcile VAT Return > Make adjustments.
You haven't cleared values from previous VAT Returns from the Purchase Tax Control Account.
You entered journals directly to the Purchase Tax Control Account with a tax code that isn't included in the VAT Return, for example, T9.
You've specified different date ranges when calculating the VAT Return and the balance on the Purchase Tax Control Account.
You've entered an opening balance onto the Purchase Tax Control Account.
You've entered a VAT amount transaction where the tax code used isn't included in the VAT Return.
You've manually added notional VAT to T8 transactions.
You've included unreconciled transactions from before the specified VAT period on the VAT Return, but they aren't included in the day books reports.
You've posted transactions with a vatable tax code but the transaction types aren't included in the VAT Return, such as purchase discounts.

[T3] - Net Payable (Excess of T1 over T2)

This is the sum of boxes 3 and 4.

If box 3 is greater, it indicates the amount of money you owe to the Revenue.

[T4] - Net Repayable (Excess of T2 over T1)

This is the total of boxes 3 and 4.

If box 4 is greater, it indicates the amount of money the Revenue owe you.

[E1] - Total Goods TO other EU countries

This is the total value of goods sold to customers in other EU countries.

The value in this box is the net value of all sales receipts, plus sales on account, bank cash and visa receipts and journal credits posted with a T4 tax code, within the specified date range.

[E2] - Total Goods FROM other EU countries

This is the total value of goods purchased from suppliers in other EU countries.

The value in this box is the net value of all purchase invoices less credits, bank cash and visa payments, and journal debits posted with a tax code of T7 or T8, within the specified date range.

[ES1] - Total Services TO other EU countries

This is the total value of services supplied to customers in other EU countries.

The value in this box is the net value of all sales receipts, plus sales on account, bank cash and visa receipts and journal credits posted with a T22 tax code, within the specified date range.

[ES2] - Total Services FROM other EU countries

This is the total value of services received from suppliers in other EU countries.

The value in this box is the net value of all purchase invoices less credits, bank cash and visa payments, and journal debits posted with a tax code of T23 or T24, within the specified date range.

[PA1] - Value of goods imported under Postponed Accounting (net plus carriage, insurance and freight (CIF))

This is the total value of goods purchased from suppliers in other EU countries.

The value in this box is the net value of all invoices less all credits raised with a postponed VAT accounting purchase tax code, by default T39-T50.

Total value of sales, excluding VAT

The value in this box is the total value of sales, and should agree with:

	The net amount of the transactions on the Day Books: Customer Invoices (Detailed) report.
Less	The net amount of the transactions on the Day Books: Customer Credits (Detailed) report.
Plus	The net amount of the transactions on the Day Books: Bank Receipts (Detailed) report. NOTE: You must add the net total on each bank account together to get the full net amount.
Plus	The net amount of the transactions on the Day Books: Cash Receipts (Detailed) report. NOTE: You must add the net total on each bank account together to get the full net amount.
Plus	The net amount of the transactions on the Day Books: Credit Card Receipts (Detailed) report. NOTE: You must add the net total on each bank account together to get the full net amount.
Plus	The value of any journal credits posted to nominal codes other than the Sales or Purchase Tax Control Accounts, with a vatable tax code.

Why the values may not agree:

You've made manual adjustments. To view or amend manual adjustments from the VAT Return window > Reconcile VAT Return > Make adjustments.
You've used inconsistent date ranges.
You've included unreconciled transactions from before the specified VAT period on the VAT Return, but they aren't included in the day books reports.

Total value of purchases, excluding VAT

The value in this box is the total net value of purchases, and should agree with:

	The net amount of the transactions on the Day Books: Supplier Invoices (Detailed) report.
Less	The net amount of the transactions on the Day Books: Supplier Credits (Detailed) report.
Plus	The net amount of the transactions on the Day Books: Bank Payments (Detailed) report. NOTE: You must add the Net total on each bank account together to get the full Net amount.
Plus	The net amount of the transactions on the Day Books: Cash Payments (Detailed) report. NOTE: You must add the net total on each bank account together to get the full net amount.
Plus	The net amount of the transactions on the Day Books: Credit Card Payments (Detailed) report. NOTE: You must add the net total on each bank account together to get the full net value.
Plus	The value of any journal debits posted to nominal codes, other than the Sales or Purchase Tax Control Accounts, with a vatable tax code.

Why the values may not agree:

You've made manual adjustments. To view or amend manual adjustments from the VAT Return window > Reconcile VAT Return > Make adjustments.
You've used inconsistent date ranges.
You've included unreconciled transactions from before the specified VAT period hon the VAT Return, but they aren't included in the day books reports.

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