Republic of Ireland standard VAT scheme

Summary

This guide explains how the VAT Return calculates and how to check the VAT Return in Sage 50 Accounts for Standard VAT in the Republic of Ireland (ROI).

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.

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, T27, T28, T31, T32, T35, T36, T39	SI, SC, BR, VR, CR, JC
	VAT due on intra-EU acquisitions.	T8, T18, T24, T25, T26, T29, T30, T33, T34, T37, T38, T39, T40, T41, T42, T43, T44, T45, T46, T47, T48, T49, T50	PI, PC, BP, VP, CP, 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	PI, PC, BP, VP, CP, 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	SI, SC, BR, VR, CR, JC
E2	Total goods from other EU countries.	T5, T7, T8, T15, T17, T18, T25, T26, T29, T30, T33, T34, T37, T38	PI, PC, BP, VP, CP, JD
ES1	Total services to other EU countries.	T22	SI, SC, BR, VR, CR, JC
ES2	Total services from other EU countries.	T23, T24	PI, PC, BP, VP, CP, 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	SI, SC, BR, VR, CR, 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, T40, T41, T42, T43, T44, T45, T46, T47, T48, T49, T50	PI, PC, BP, VP, CP, 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 > Standard VAT.

VAT charged on supplies of Goods and Services

The value in box 1 should agree with the nominal activity history balance on your Sales Tax Control Account when calculated for the same period. Box 1 should also agree with:

	The VAT amount of the transactions on the Day Books: Customer Invoices (Detailed) report.
Less	The VAT amount of the transactions on the Day Books: Customer Credits (Detailed) report.
Plus	The VAT amount of the transactions on the Day Books: Bank Receipts (Detailed) report. NOTE: You must add the VAT total on each bank account together to get the full VAT amount.
Plus	The VAT amount of the transactions on the Day Books: Credit Card Receipts (Detailed) report. NOTE: You must add the VAT total on each bank account together to get the full VAT amount.
Plus	The VAT amount of the transactions on the Day Books: Cash Receipts (Detailed) report. NOTE: You must add the VAT total on each bank account together to get the full VAT amount.
Plus	The value of any journal credits 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'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: 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 nominal activity history balance on your Purchase Tax Control Account when calculated for the same period. Box 4 should also 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. NOTE: You must add the VAT total on each bank account together to get the full VAT amount.
Plus	The VAT amount of the transactions on the Day Books: Cash Payments (Detailed) report. NOTE: Note: You must add the VAT total on each bank account together to get the full VAT amount.
Plus	The VAT amount of the transactions on the Day Books: Credit Card Payments (Detailed) report. NOTE: You must add the VAT total on each bank account together to get the full VAT amount.
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 Sales Tax Control Account.
You entered journals directly to the Sales Tax Control Account with a tax code that isn't included in the VAT Return, for example, T9.
You specified different date ranges when calculating the VAT Return and the balance on the Sales Tax Control Account.
You've entered an opening balance onto the Sales Tax Control Account.
You've entered a VAT amount transaction where the tax code used isn't included in 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.
You've posted transactions with a vatable tax code but the transaction types aren't included in the VAT Return, such as sales 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 invoices less all credits and receipts raised with an EU purchase tax code of T4.

[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 invoices less all credits and payments raised with an EU purchase tax code of T7 or T8.

[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 invoices less all credits and receipts raised with an EU purchase tax code of T22.

[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 invoices less all credits and payments raised with an EU purchase tax code of T23 or T24.

[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 amount.
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.

Republic of Ireland standard VAT scheme

Summary

Description

Resolution

The VAT Return

How the VAT Return calculates

Confirm the figures on the VAT Return

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