How do I view the reconciliation status of a transaction?
Locate the transaction in Transactions then check the VAT column.
| R | This indicates that the transaction is reconciled |
| N | This indicates that the transaction is unreconciled |
| - | This indicates that it’s a non-vatable transaction, for example, a sales invoice, posted using the default non-vatable tax code T9 |
What is the difference between zero rated and exempt items?
Zero-rated items are goods on which the Government charges VAT but the rate is zero percent. The goods covered by this classification are items such as children's clothes and footwear, water, basic foods, books and newspapers.
Exempt items are goods on which there's no VAT charged, but still need recording on the VAT Return. The goods covered by this classification are items such as land, postal services, health services, betting and gaming.
I forgot to reconcile my last VAT Return.
If you didn't reconcile transactions on your previous VAT Return, Sage Accounts will notify you. Details of unreconciled transactions from before the specified period show when you calculate your next VAT Return.
If these transactions relate to a previously unreconciled VAT Return:
- Calculate the VAT Return from the previous period, then check it against the VAT Return that you submitted to HMRC.
- If the figures are the same, you can reconcile the transactions and proceed with your current VAT Return.
- If the figures are different, this is due to one or more of the following:
- Transactions from the previous period that you have not chosen to include in the calculation. For example, if your current period is quarter 4, and you forgot to reconcile quarter 3. These transactions may be late entries from quarter 2. In this case, you can recalculate the VAT Return including these figures. If the totals then match, you can reconcile the transactions
- You entered transactions from the current period after you completed the VAT Return, in the previous period.
For example, if your current period is quarter 4 and you forgot to reconcile quarter 3, these transactions might have been posted after you completed the quarter 3 VAT Return using a quarter 3 date.
If you can't identify the transactions causing the differences, calculate the VAT Return for both periods, then deduct the previous period's figures. The resulting figures are the values for the current VAT period.
Why do discounts appear on my VAT Return?
Discounts now appear on the VAT return because online submissions were sometimes rejected if the VAT exceeded the net multiplied by the standard rate. HMRC advised showing the full net amount, not the discounted net amount.
Why do invoices appear on my VAT Return when I use EC tax codes?
The VAT Cash Accounting scheme excludes EC transactions. You must account for these on an invoice basis.
Why do T9 transactions appear on the VAT Report (detailed) report?
If your T9 transactions appear on your VAT Report (detailed), the T9 tax code might be flagged for inclusion on the VAT Return or it could be a discount transaction. Amend the T9 tax code in the tax code configuration.
- Settings > Configuration > Yes to close all other open windows > Tax Codes.
- From the list of tax codes, select tax code T9 > Edit.
- Clear the Include in VAT Return check box > OK.
- Apply > Close and when prompted to save your changes > No.
I’ve reconciled a VAT Return in error. Can I undo this?
No, it isn't possible to undo a VAT reconciliation. To correct this, you need to restore a backup taken before you reconciled the VAT Return.
How do I change the non-vatable tax code?
- Settings > Company Preferences > Yes to close all other open windows > VAT.
- From the Non-Vatable Tax Code drop-down list, select the required tax code > OK.
How do I know what VAT period to use?
When you register for VAT HMRC advise you of the VAT periods you’ll submit for. If you submit quarterly your VAT period falls into one of the following staggers:
- March - June - September - December
- April - July - October - January
- May - August - November - February
You can apply to have your VAT period end pattern changed to a different pattern, or request to submit monthly or annual VAT Returns. For further information regarding VAT periods, refer to HMRC.
I’m not yet ready to run the year end. Can I still reconcile my VAT Return?
Yes, you can reconcile your VAT Return before running the Year End option. Reconciling your VAT Return within Sage Accounts doesn’t remove any transactions, therefore all balances are still correct.
Why is the figure in Box 1 or Box 4 isn’t 20% of the figure in Box 6 or Box 7?
The figure in Box 1 or Box 4 isn’t 20% of the figure in Box 6 or Box 7 when transactions in Box 6 or Box 7 don't have VAT at 20%, for example:
- You’ve posted transactions using a lower rated tax code, such as T5 at 5%
- You’ve posted transactions with a tax code that has a 0% rate. Such as T0 and T2
- You have posted EC sale of goods and related cost transactions using the T4 tax code. These transactions appear in Box 6, but don’t have 20% VAT recorded in Box 1
- You have posted EC purchase transactions using the T7 tax code. These transactions appear in Box 7, but don’t have 20% VAT recorded in Box 4
- You have posted journals that appear in Box 1 or Box 4 and Box 6 or Box 7, but the journal in Box 1 or Box 4 isn’t 20% of the journal in Box 6 or Box 7
- You’ve posted a manual adjustment to Box 1, Box 4, Box 6 or Box 7
How do I view the earlier unreconciled transactions?
When you click Calculate VAT Return, a list of the earlier unreconciled transactions appears. To print this list, click Print. You can also print the list of these transactions from the Reconcile VAT Return window, click Print VAT Return and select Earlier unreconciled transactions.
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