You need to send VAT returns regularly to HMRC from Sage Accounting if you're VAT registered. This could be monthly, quarterly, or yearly.

Once you submit a VAT Return, you can't make any changes. If you need to make adjustments, you'll need to do this on the next VAT Return.

If you accidentally submitted a return manually, the status will display as VAT Return Submitted Manually. Read how to resubmit a manual VAT return with MTD >

Before you start

• Enter your VAT registration number from More, Business Settings, then Accounting Dates & VAT
• Authorise Sage Accounting with HMRC to submit VAT returns via MTD. Do this from More, Business Settings, then Accounting Dates & VAT. Read more in our Get set up for Making Tax Digital (MTD) guide >
• Submit or delete any draft VAT Returns
• Resubmit any failed VAT Returns

Create your VAT return

1. From More, select VAT Returns.
2. Select Create VAT Return.
   We automatically check for the next VAT period and set the dates on the return for you.
    TIP: If you can change the From and To dates, you have not yet authorised your software with HMRC. Unless you are exempt from MTD, you must do this before submitting your VAT return.
3. Choose Calculate.
4. A prompt appears on-screen for transactions dated before the VAT period that weren’t included on a previous return. To check these transactions, select View Previous Transactions. 
   Choose whether to include them on your VAT Return:
   Now - Include them on this return.
   Later - Ask me again when I run my next return.
   Never - Exclude them from all future returns. Choose this if you've already submitted the transactions to HMRC. This could be from a return submitted from a different system.

 NOTE: If you receive any errors when submitting your VAT return, read how to troubleshoot here > 

Make adjustments >

 CAUTION: We advise speaking to your accountant before making any adjustments to a VAT return The figures in each box of the VAT Return calculate automatically. This calculates based on the:

• transactions entered in Accounting Start
• VAT scheme you are using
• dates of the transactions

Once you include a transaction on a VAT return, you can only change the ledger account and reference. Read more about correcting transactions on a VAT return >

Why and when to make adjustments

Under MTD, you must keep digital records of your transactions. Include these on your VAT return.

HMRC do allow you to make some adjustments outside your software. This may be for partial exemptions. It can also be for other calculations you need to do on a spreadsheet such as the capital goods scheme.

For more information go to Gov.uk VAT notice 70022 (opens in new tab)

You will need to enter adjustments if you have accidentally submitted a VAT return without using MTD.

Read more about submitting a rejected VAT return >

How to make adjustments

Enter the amount you want to change the value by and a reason for the change, then select Save.

Impact of adjustments

Adjusting the VAT on Sales or Purchases on the VAT return updates the following categories.

	Debit	Credit
Sales	9999 (Suspense)	2202 (VAT Liability)
Purchases	2202 (VAT Liability)	9999 (Suspense)

You can move the value posted to ledger 9999 to the required ledger account using a manual journal. You may need to take advice from your Accountant if you're unsure how to do this.

Generate detailed report >

To check the transactions included in each box of the return, export the Detailed Report as either a PDF or CSV.

This shows a list of all the transactions that make up the total for each box on the VAT return.

• Select Detailed Report then choose the relevant option, PDF or CSV
• If you choose PDF, the report downloads automatically. When it’s ready you receive a notification on the menu bar. Select the report, which then opens in a new window or tab
• If you choose the CSV option, the file will save to your browser. Where it appears depends on which web browser you use

Print the VAT return >

This allows you to create a copy of the VAT return to keep for your records. Choose from a PDF or CSV version.

• From the Print drop-down, select PDF or CSV

Save a draft VAT return >

If you're not yet ready to submit the VAT return, choose Save this return and submit it later.

This saves the VAT return as a Draft and displays on the VAT Return List. We still flag all the transactions to show they're included on a VAT Return. This prevents you from editing or deleting them.

Just delete the draft VAT return, to edit or delete these transactions.

Delete a draft VAT return >

You can only delete a draft VAT return. Once you submit a VAT return to HMRC, you cannot delete it.

If you have made an error, reverse the original transaction and re-enter it. This then updates on you next VAT return. Read more about correcting VAT transactions >

To delete your draft VAT Return:

1. From More, select VAT Returns
2. In the VAT Returns list, find the VAT return with Draft in the Status column.
3. Select the bin icon on the left of the row. When prompted, choose Yes to Are you sure you wish to delete this VAT Return.

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Submit your VAT return

Once you're ready to send your VAT Return to HMRC.

1. Select Submit Online to HMRC.
2. Choose Save.
3. When prompted, choose Finalise, then Submit to complete the submission.

We send your VAT return directly to HMRC.

Unless you are exempt from Making Tax Digital (MTD), do not choose Submit to HMRC by other means. If you have done this in error, find out how to resubmit a manual VAT return with MTD >

Businesses exempt from MTD >

A small number of businesses are exempt from the MTD rules.

If your business is exempt,

1. Choose Submit to HMRC by other means.
2. Print the VAT return. Use the figures on the printed VAT return to send to HMRC another way.

These are businesses where HMRC deems you meet one of the following criteria (outlined in HMRC VAT Notice 700/22: Making Tax Digital for VAT):

• Your business is entirely run by practising members of a religious society whose beliefs are incompatible with the requirements of the regulations. For example, those religious beliefs prevent them from using computers
• It is not reasonably practicable for you to use digital tools to keep your business records or submit your returns. This may be for reasons of age, disability, remoteness of location or for any other reason
• You’re subject to an insolvency procedure

HMRC will decide if you meet the exemption criteria. To avoid potential penalties, you must check with them directly. Don’t assume you meet the criteria.

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• Recording VAT payments and refunds
• Set up VAT
• I am receiving errors when submitting a VAT Return