Confirm the figures on a VAT Return under the Cash Accounting scheme

Confirm the figures on the VAT Return

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 the reports are in Reports, Reconciliation reports, VAT cash scheme.

▼ Box 1

The figure in Box 1 should agree with:

	The VAT element of the transactions on the Day Books: Customer Receipts (Detailed) report
Plus	The VAT element of the transactions on the Day Books: Bank Receipts (Detailed) report
Plus	The VAT element of the transactions on the Day Books: Cash Receipts (Detailed) report
Plus	The VAT element 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 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 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 Sage Technical Support
Less	The VAT element of the transactions on the Day Books: Customer Payments (Summary) report NOTE: If you have recently changed VAT schemes from Standard VAT, this report may show transactions which use the Standard VAT tax codes if you have refunded an invoice from the Standard VAT scheme. These transactions won't be included in your VAT Return if you are using new tax codes for VAT Cash Accounting. To find this report, Bank accounts > Reports >Customer receipts and payments

Why the figures would not agree

Manual adjustments may have been made, to view or amend manual adjustments, from the VAT Return window click the Adjustments button
Different date ranges have been specified when calculating the VAT Return and running the day books reports
One or more of the bank accounts have been excluded from the day books reports
A VAT element has been entered onto a sales transaction, whose tax code is not included in the VAT Return
Unreconciled transactions from before the specified VAT period have been included in the VAT Return but they are not included in the day books reports

▼ Box 2

The figure in Box 2 is the notional VAT calculated on T8 transactions when T8 is linked to T1. This figure should be 20% of the value of your T8 transactions.

If you want a report to show these transactions with the notional VAT calculated, please contact us.

▼ Box 3

This is the sum of Box 1 plus Box 2.

▼ Box 4

The figure in Box 4 should agree with:

	The VAT element of the transactions on the Day Books: Supplier Payments (Detailed) report
Plus	The VAT element of the transactions on the Day Books: Bank Payments (Detailed) report
Plus	The VAT element of the transactions on the Day Books: Cash Payments (Detailed) report
Plus	The VAT element 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 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 T8 invoices when they are linked to T1 There is no standard report to show these values, we recommend you click on the T20 and T8 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 T8 transactions. For more information about how to amend this report, please contact Sage Technical Support
Less	The VAT element of the transactions on the Day Books: Supplier Receipts (Summary) report NOTE: If you have recently changed VAT schemes from Standard VAT, this report may show transactions which use the Standard VAT tax codes if you have refunded an invoice from the Standard VAT scheme. These transactions won't be included in your VAT Return if you are using new tax codes for VAT Cash Accounting. To find this report, Bank accounts > Reports > Supplier payments and receipts

Why the figures would not agree

Manual adjustments may have been made, to view or amend manual adjustments, from the VAT Return window click the Adjustments button
Different date ranges have been specified when calculating the VAT Return and the day books reports
One or more of the bank accounts have been excluded from the day books reports
Notional VAT has been manually added to T8 transactions and included in Box 4
A VAT element has been entered onto a purchase transaction, whose tax code is not included in the VAT Return
Unreconciled transactions from before the specified VAT period have been included in the VAT Return, but they are not included in the day books reports

▼ Box 5

This is the figure in Box 3 less the figure in Box 4.

▼ Box 6

The figure in Box 6 is the total net value of sales and should agree with:

	The net element of the transactions on the Day Books: Customer Receipts (Detailed) report. NOTE: If you post any invoices with EC sales tax codes, T4, T20 and T22, to avoid picking up these values twice you must exclude transactions with these tax codes from this total. To do this, you can edit the report to exclude these transactions. For help editing the report, please contact support. Alternatively, if there's only a handful of transactions, you could calculate the value manually or use Excel.
Less	The net element of the transactions for goods on the VAT > OSS IOSS transactions > Non-union OSS Transactions (Detailed) report You must add the Net total for each tax code used for goods to get the full Net element NOTE: If this value is negative, you should add it instead.
Less	The net element of the transactions for services on the VAT > OSS IOSS transactions > IOSS Transactions (Detailed) report You must add the Net total for each tax code used for services to get the full Net element NOTE: If this value is negative, you should add it instead.
Plus	The net element of the transactions on the Day Books: Bank Receipts (Detailed) report
Plus	The net element of the transactions on the Day Books: Cash Receipts (Detailed) report
Plus	The net element of the transactions on the Day Books: Credit Card Receipts (Detailed) report
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
Plus	The gross value of the transactions on the Day Books: Customer Discounts (Detailed) report
Plus	The net value of any sales invoices posted with an EC sales tax code, T4, T20 and T22 The net value of the T4, T20 and T22 sales invoices on the Tax Analysis (By Invoices & Credits) report
Less	The net value of any sales credits posted with an EC sales tax code, T4, T20 and T22 The net value of the T4, T20 and T22 sales credits on the Tax Analysis (By Invoices & Credits) report
Plus	The net value of any purchase invoices posted with an EC purchases tax code T23 and T24 The net value of the T23 and T24 purchase invoices on the Tax Analysis (By Invoices & Credits) report
Less	The net value of any purchase credits posted with an EC purchases tax code T23 and T24. The net value of the T23 and T24 purchase credits on the Tax Analysis (By Invoices & Credits) report.
Less	The net element of any customer payments for the specified period The net value on the Day Books: Customer Payments (Summary) report

Why the figures would not agree

Manual adjustments may have been made, to view or amend manual adjustments, from the VAT Return window click the Adjustments button
Transactions on the reports have tax codes that are not included on the VAT Return. For example, transactions on T9
One or more of the bank accounts have been excluded from the day books reports
Inconsistent date ranges have been used
Unreconciled transactions from before the specified VAT period have been included in the VAT Return, but they are not included in the day books reports

▼ Box 7

The figure in Box 7 is the total net value of purchases and should agree with:

	The net element of the transactions on the Day Books: Supplier Payments (Detailed) report NOTE: If you post any invoices with EC sales tax codes, T7, T8, T23 and T24 or the reverse charge code, T20, to avoid picking up these values twice you must exclude transactions with these tax codes from this total. To do this, you can edit the report to exclude these transactions. For help editing the report, please contact support. Alternatively, if there's only a handful of transactions, you could calculate the value manually or use Excel.
Plus	The net element of the transactions on the Day Books: Bank Payments (Detailed) report
Plus	The net element of the transactions on the Day Books: Cash Payments (Detailed) report
Plus	The net element of the transactions on the Day Books: Credit Card Payments (Detailed) report
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
Plus	The net element of the transactions on the Daybooks: Supplier Discounts (Detailed) report To find this report, Suppliers > Reports > Day books
Plus	The net value of any purchase invoices posted with an EC purchases tax code, T7, T8, T20, T23 and T24
Less	The net value of any purchase credits posted with an EC purchases tax code, T7, T8, T20, T23 and T24
Less	The net element of any supplier receipts for the specified period

*You should exclude the net value of any T9 transactions.

Why the figures would not agree

Manual adjustments may have been made, to view or amend manual adjustments, from the VAT Return window click the Adjustments button
Transactions on the reports have tax codes that are not included on the VAT Return. For example, transactions on T9
Inconsistent date ranges have been used
Unreconciled transactions from before the specified VAT period have been included in the VAT Return, but they are not included in the day books reports

▼ Box 8

The figure in Box 8 is the net element of all customer invoices less credits, bank cash and visa receipts and journal credits posted with a T4 tax code, within the specified date range, plus any Union OSS transactions for goods.

The net element of all customer invoices less credits, bank cash and visa receipts and journal credits posted with a T4 tax code, within the specified date range

Plus

The net element of the transactions for goods on the VAT > OSS IOSS transactions > Union OSS Transactions (Detailed) report

You must add the Net total for each tax code used for goods to get the full Net element

NOTE: If this value was negative, you should subtract it instead.

Why the figures would not agree

On VAT Cash Accounting the VAT Return picks up sales invoices (SI) and sales credits (SC), however this reports only shows the sales receipts (SR) and sale payments (SP). Therefore, if the SI/SC and SR/SP, are in different VAT periods, this may cause a difference when reconciling

▼ Box 9

The figure in Box 9 is the net element of all purchase invoices less credits, bank cash and visa payments, and journal debits posted with a T8 tax code, within the specified date range

NOTE: If you would like a report to display these transactions, please contact us.