Preparing for a VAT return with Making Tax Digital
Ensuring location information is up-to-date
As the VAT return is submitted electronically, it is important that data for each location within IRIS Financials is up-to-date. To check this:
- In IRIS Financials select Masters > Accounts > ACADEMY and select the applicable location. Select the Limits & VAT tab. The VAT Number field must show the location's VAT registration number.
- If required, enter the number then click Apply.
- Select the Address tab and ensure the address is present.
New nominals required for MTD submission for EU transactions
When 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
The mappings of these nominals happen during installation. These nominals are mapped to the VAT Return
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
To create the journal:
- Select Options > Document Input. From the Document Input dialog select the applicable journal document type for the location required:
- Select PSFJournal from the Input Form.
- Enter the required Document Date and Document Period and click the OK.
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Complete the journal showing the User Value (net sales) being transferred from the
You need to use your mouse to click into the User Value as pressing the Tab key may not select the field.
- Press F5 to post the journal.
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Repeat this for any other transactions required.
Reconcile the VAT account with the VAT 100 report
Before proceeding with the VAT return process, make sure the VAT account/quarter is set to Prepare to stop any new postings from other users whilst the process is carried out.
- In IRIS Financials go to Masters > Accounts and select VAT.
- Select the applicable VAT account/quarter and click on the Tax tab.
- Select the Prepare check box and press the Apply button.
The VAT 100 report shows the transactions that make up the VAT return.
This report should be checked against the VAT return to ensure the values match so that the report can be filed as evidence of what is being claimed for a particular month/quarter.
Before running the report or using the MTD Making Tax Digital module, make sure any manual adjustments are posted so that they are included in the electronic submission.
- In IRIS Financials, go to Modules > Reporting Suite and select the VAT100 Report.
- When the page loads, use the drop-down menus to select the applicable criteria for the VAT period/quarter and select the View Report .
When the report loads, the VAT return boxes will show values based on what has been posted in IRIS Financials for the selected period/quarter. These boxes should be reconciled to the VAT Account in IRIS Financials. - In IRIS Financials go to Masters > Accounts > VAT.
- Select the applicable VAT Period/Quarter. Select the Tax tab, selectPrepare then click Apply. This will stop any new transactions being posted into the VAT period/quarter.
- Select the Details tab and right-click on the preview window. Select Account Enquiry from the pop-up menu.
- Drag the Nominal column header to the Drag a column header here to group by that column panel.
- You can reconcile the VAT account with the VAT 100 report.
- Save and print the VAT 100 report once it has been reconciled.
- You can now submit the return via the new MTD Making Tax Digital module. Refer to Submitting a VAT Return using Making Take Digital.