Preparing for a VAT return with Making Tax Digital(v7+)

Ensuring location information is up-to-date

As the VAT return is submitted electronically, it is important that data for each location within an establishment/organisation is up-to-date.

  1. Select Maintenance, then select Accounts from the menu.

  2. The Select a ledger dialog displays. Select ACADEMY - Academy Details .

  3. The Account Maintenance window displays. Select the required location from the left-hand panel e.g. AST - Auckley Street Secondary Academy, then select the Address tab.

    Check the location's address details have been entered and the VAT number is shown in Tax number. If the location address details need to be updated or if the VAT number needs to be entered, select EDIT, enter the required details, then select SAVE.

New nominals required for MTS submission for EU transactions

When VAT Returns MTD Making Tax Digital is installed, three new nominals are created. These nominals are only to be used if your academy/MAT trades with the EU. If your academy/MAT only trades within the UK, you do not need to use these.

  • 9526: Reverse Charge Output VAT

  • 9527: Reverse Charge Input VAT

  • 9528: Net Sales - EU Supplies

No mappings are required for these nominals as this was completed as per the installation process.

These nominals are mapped to the VAT Return as per the following:

These nominals should be used for the relevant transactions in order for them to appear in the correct boxes in the VAT return.

(Optional) Journal net value of EU supplies/acquisitions

You need to complete a journal if there are any movements of goods within the EU.

The journal moves the net sales from the 9522 VAT output nominal to 9528 Net Sales - EU Supplies nominal. This ensures any EU sales appear in the correct box on the VAT return.

To create the journal:

  1. select Documents, then select Document Input.

  2. The Document Input dialog displays.
  3. Select ASGJ - Journal (where AS represents the location code of the document type) in Document type, then select PSFJournal in Input Form.
  4. Select the required Date and Period for the document, then select OK.

  5. The PSFJournal document input form displays. Complete the journal showing the User Value (net sales) being transferred from the 9522 VAT Output nominal to the 9528 Net Sales - EU Supplies nominal.

  6. When you have completed all the required information for the journal, press F5 or select POST to post the document.

  7. A blank journal displays, either complete a journal for any other transactions required, or select X to close the window.

The User Value is now shown against the 9528 nominal.

Reconcile the VAT Account with the VAT 100 Report

Before proceeding with the VAT return process, make sure the VAT account or quarter is set to Manual to stop any new postings from other users whilst the process is carried out.

  1. select Maintenance, then select Accounts from the menu.
  2. The Select a ledger dialog displays. Double-select to select VAT - VAT Accounts .
  3. The Account Maintenance window displays. Select the required VAT period from the left-hand panel, select the Tax tab, and check the Status of Manual is selected for the VAT period. If you need to update the status for the period, select EDIT, select Manual from the Status drop-down list, then select SAVE.

The VAT 100 report shows the transactions that make up the VAT return. This report should be checked to make sure that the values match the VAT return so that it can be filed as evidence of what was claimed for a particular month or quarter.

Before running the report or using the VAT Returns MTD Making Tax Digital (if used), make sure any manual adjustments are posted so that they are included in the electronic submission.