The Summary tab in Sage Accounting gives you a real-time view of your VAT position for the current period. The VAT figures update automatically as you enter and review transactions.

You can use this information to check your expected VAT liability or reclaim amount before you submit a VAT Return to HMRC.

Understand the VAT Returns section

The VAT Returns section shows two values:

• So far this period
• From before this period

Each figure represents a different part of your VAT position.

How Sage calculates: So far this period

So far this period shows the VAT due or reclaimable for the current VAT period that you haven’t yet submitted.

Sage calculates this figure using:

• VAT from sales transactions in the current VAT period
• VAT from purchase transactions in the current VAT period
• VAT holding accounts, if you use a cash-based VAT scheme

If the value shows as Reclaimable, you expect to reclaim VAT from HMRC.
If the value shows as Payable, you expect to pay VAT to HMRC.

How Sage calculates: From before this period

From before this period shows any VAT balance carried forward from earlier periods.

Sage takes this value from your VAT liability nominal ledger account. This can include:

• VAT owed to HMRC from a previous VAT Return

• VAT owed to you by HMRC that you haven’t yet received

This figure only changes if you run a VAT Return or post adjustments that affect the VAT liability account.

Why the figures may not match your submitted VAT Return

The figures on the Summary tab are estimates until you run a VAT Return.

They may differ from a submitted VAT Return if:

• You chose not to include earlier transactions in a previous VAT Return
• You posted adjustments after submitting a VAT Return
• You reviewed or changed transactions dated in an earlier VAT period

Once you run a VAT Return, Sage locks the included transactions and updates the VAT liability account.

Running your VAT Return

When you’re ready to submit, select Run VAT Return from the VAT Returns section. Sage uses the current calculated figures to prepare your return for submission to HMRC.

For more information about using the Summary tab, see How to use the Summary tab.