Prepare the VAT Return

  • Prepare the EC Sales List prior to preparing your VAT Return.

    When you produce a VAT Return, the figures required by the EC Sales List are cleared out. You will not be able to reproduce the EC Sales list after you have run the VAT Return.

  • Be aware of all factors relating to your business in respect of VAT liability. If you are unsure, either consult your accountant or look for further information in the official publications on VAT, as detailed in the leaflet VAT Notes, available from your local VAT office.

If you are VAT registered you are required to submit a regular VAT Return with the relevant tax authority - HMRC or the Irish Revenue.

There are three stages to completing a VAT Return.

  1. Establish your current VAT position.

    You can view and print the VAT Return at any time during a VAT period. This shows you your VAT liability.

    We recommend that you do this on a regular basis. Doing this will allow you to keep control of your cash flow. You can also identify any transactions that have been incorrectly posted.

  2. Reconcile the VAT Return.

    Before producing your final VAT Return for the period, we recommend that you check the transactions on the VAT Return with the transactions in the Sales, Nominal and Purchase Ledgers.

  3. Produce the final VAT Return.

    This submits the final VAT Return for the period. You can only do this once for a VAT period. You can:

    • Print and send the paper copy of the VAT Return to the relevant authorities.
    • Submit the VAT Return online. You can send the VAT Return directly to the HMRC via the HMRC online services (UK). If you are based in Ireland, you can send it to the Irish Revenue via your ROS (Revenue On-line Service) account.

Once you produce the VAT Return, each transaction is marked as reconciled. These transactions cannot be included in any subsequent VAT Returns. Once run the process cannot be reversed.

Note: The Sage 200 VAT Analysis routine does not support cash accounting.

Country code and base currency

To be compliant with legislation and produce and accurate VAT return, we strongly recommend using the following combinations of country code and base currency in Sage 200:

  • UK: VAT country code GB - Great Britain, and base currency GBP - Pounds Sterling.
  • Ireland: VAT country code IE – Ireland, and base currency EUR - Euro.

Sage is providing this article for organisations to use for general guidance. Sage works hard to ensure the information is correct at the time of publication and strives to keep all supplied information up-to-date and accurate, but makes no representations or warranties of any kind—express or implied—about the ongoing accuracy, reliability, suitability, or completeness of the information provided.

The information contained within this article is not intended to be a substitute for professional advice. Sage assumes no responsibility for any action taken on the basis of the article. Any reliance you place on the information contained within the article is at your own risk. In using the article, you agree that Sage is not liable for any loss or damage whatsoever, including without limitation, any direct, indirect, consequential or incidental loss or damage, arising out of, or in connection with, the use of this information.

See also

Steps in this task

Establish current VAT position

Reconcile VAT transactions

Produce the final VAT Return

Online VAT submissions