Review and finalise your VAT Return and reports

Find this screen

Open: Revenue and Submissions > VAT Analysis

How to

Print a summary of sales and purchases by VAT rate

Open: Revenue and Submissions > VAT Analysis

Select the Current Period Totals tab.
Click Print.

Print a copy of your VAT Return (or report) for review

This prints a copy of the VAT Transaction (Education) report (Purchase Transaction Details for VAT126), as well as the standard VAT Return (which is not required by most schools). Use this to check the VAT report before you finalise it. As you can't reprint the final VAT report, it's a good idea to print if first for your records.

Tip: When you come to prepare the VAT126, it's a good idea to send the VAT transactions (Education) report to Excel, so you can make any changes. When you view the report, click Report to Excel to send the report to Excel. You can then make any changes in Excel before you prepare and submit the VAT126. You submit the VAT126 to HMRC directly, not using Sage 200.

This prints a copy of the VAT Return and the details of the vatable transactions included in the return. Use this to check the VAT Return before you finalise it.

Open: Revenue and Submissions > VAT Analysis

Select the Current Period Return tab.
The details of the current VAT Return are displayed.
To view the transactions that make up the totals boxes 1-9 click on the blue underlined total.

The VAT Breakdown window is displayed. This contains a list of the transactions that make up the VAT Return total, split by their tax code. To display the list of transactions for a particular code, select the tax code from the list in the top of the window.
To print the VAT ReturnVAT Transaction (Education) report and transaction reports, click Print.

Note: This is not a finalised VAT Return. Depending on when you produce the final VAT Return for the period, the figures may change.

The following reports are printed:
- The VAT Transaction (Education) report (Purchase Transaction Details for VAT126).
  
  This report contains the details of your VAT transactions which you can use for your VAT126, that you send to your LEA or the HMRC (for academies).
  
  As you can't reprint the report, we recommend that you keep a copy for your records.
  
  The report shows purchase transaction details for your supplier invoices and credit notes, showing the transaction date, supplier's VAT registration, to whom addressed, VAT paid, and the transaction URN.
- A copy of the VAT Return, either the VAT 100 or VAT 3 form (not required by most schools).
- The VAT Transactions - Codes Included in the VAT Return report.
  
  This shows a list of all the transactions whose values are included in the boxes on the preview VAT Return.
- The VAT Transactions - Codes Not Included in the VAT Return report.
  
  This shows a list of transactions not included in the VAT Return. These are excluded because the VAT code for these transactions has been set to not be included in a VAT Return.

Examine individual transactions in your current VAT period

Open: Revenue and Submissions > VAT Analysis

Select the Current Period Return tab.
Click on the blue underlined total of the section you want to examine.

The transactions that make up this total are displayed on the VAT Breakdown window.
Select a VAT code from the top section.

The transactions are displayed in the middle section.

Enter adjustments to your current VAT Return

Open: Revenue and Submissions > VAT Analysis

Select the Current Period Return tab.
Click on the blue underlined total of the section you want to adjust.

The transactions that make up this total are displayed on the VAT Breakdown window.
Select a VAT code from the top section.

The transactions are displayed in the middle section.
Click into the Adjustment section.
Enter the Reason and Amount of the adjustment.

You can enter positive or negative amounts here. It is added to the total value of the relevant section of your VAT Return.
Click Close to return to the Vat Analysis screen and review the adjusted VAT Return.

Note: Adjustments are not saved until you click Produce VAT Return. If you leave the VAT Analysis screen without producing your VAT Return you need to re-enter any adjustments you want to include in the VAT Return.

Produce your final VAT Return (or report)

After you have printed your VAT ReturnVAT report and checked that it is accurate, you can produce your final VAT ReturnVAT report.

When you produce your final VAT ReturnVAT report, each transaction included on the report is marked as reconciled, so that it won't be included on any future VAT ReturnVAT report. This means that you can be sure that transactions will not be included in more than one VAT ReturnVAT report.

If you enter a transaction dated before the end of the previous VAT period, it's automatically included in the report for the next VAT period. This saves you having to check your transactions against the VAT report for the previous VAT period.

Transactions are included on the VAT report based on the following:

They include VAT.
They are dated on or before the VAT period end date, and haven't been included in any previous VAT report.
The VAT rate used is set to be included on the VAT Return.

Tip: We recommend that your VAT reports are sent to spooler rather than just previewed on screen, in case you need to reprint them.

You can only produce a VAT ReturnVAT report for a period once.

When the VAT report is finalised (by clicking Produce VAT Return):

The transactions are flagged as reconciled so they can't be included in any future VAT reports.
You can't change the values on the VAT ReturnVAT report.
You can't reprint the report.

Once you produce the report, this process can't be reversed, so we strongly recommend that you print the VAT ReturnVAT report first and check that it is accurate.

Open: Revenue and Submissions > VAT Analysis

Select the Current Period Return tab.
Click Produce Vat Return.The Produce VAT Return screen is displayed.
Select the I understand that this VAT return ... confirmation box.
If required, choose Delete VAT transactions... and enter the date to delete transactions up to.

We recommend that you don't delete transactions for your current VAT period.

Sage 200 stores the VAT on transactions in a separate file. To make sure this file doesn't get too big, you can delete transactions that have been included on a VAT Return.
Enter the next VAT Return date.

This date is used the next time you want to produce a VAT Returnreport.

If you need to change this later, use Amend VAT Return Date.
Click Produce VAT Return.

This produces the final VAT ReturnVAT report for this period.

Note - danger
Remember that you cannot make changes to the VAT ReturnVAT report once you click this button.
You'll be prompted to add attachments to the return.

These documents are stored with the VAT Return, and can be viewed later from the Completed Period Totals tab. To do this, see Attach files and scanned documents.

Submit the VAT Return to HMRC (UK)

If you submit online to HMRC:

The Online VAT Credentials screen opens.
Ensure your contact details are correct.

You must enter a valid email address or the submission will fail.
Enter your User ID and Password. Enter your password again in the Confirm Password field.

This is your User ID and Password for HMRC Online Services.
To submit your VAT Return to HMRC, click OK.
Follow the steps through the Sage Internet Submissions wizard.

Submit the VAT Return to the Irish revenue (Ireland)

If you submit online to the Irish Revenue:

A Save As window opens.
Enter a location and name for the Tax Return file.
Send the file to the Revenue. You perform this step on the Revenue's website.

Attach files and scanned documents

You can attach files and scanned documents when you enter a purchase invoice or credit note, enter a nominal journal entry, view sales and purchase invoices, confirm goods received, or produce a VAT Return.

To add an attachment or scanned image:
- When you create a purchase invoice or credit note, select Save and Attach.
- When you enter a nominal journal entry, select Post and Attach.
- When you produce a VAT Return, you'll be prompted to add attachments to the return.
- When you confirm goods received, select the Attach Documents check box. You can add file attachments when you click Save to confirm receipt.
To attach a file:
- Select Attach File, then browse to the file that you want to attach and click Open.
  
  Tip: If you can't see the file, change the filter to show All Files. By default, the attachments filter only shows these file types: pdf, jpg, png, gif, txt, xls(x), doc(x), msg.
- Drag-and-drop a file into the Attachments list. For example, you can drag-and-drop multiple files from Windows Explorer, or single files from an Outlook email.
- Once the file has been added, you can enter a comment or reference in the Description column.
To scan a document and attach it as an image, click Scan Using Device.
- Select Start Scan to see a preview of the scan, and click OK to add it as an attachment.
- If the scanned image doesn't look right, you can select Rescan to scan the document again.

For more information, see Scan and attach documents.

Useful info

Best practice when finalising your VAT for the period

We advise that before you produce your VAT Return you:

Check and reconcile your VAT for the period, make any required adjustments and then print a copy of it for your records.
If required, produce your EC Sales List.

The EC Sales List is generated using figures that are removed when the VAT Return is generated. You must run the EC Sales List before producing the VAT Return.
Carefully consider the date to which you will delete transactions.

We recommend that as a minimum you leave all transactions posted in the period detailed on the VAT Return you are producing. So, for example, if you are producing a VAT ReturnVAT report for the period April, May and June, you can safely delete transactions up to the 31st March. Once you have deleted transactions, you will lose the ability to see the individual transactions that made up each section.

Check transactions for the VAT126 submission

We recommend that you check the following before submitting your final VAT126 to HMRC. You submit the VAT126 to HMRC directly, not using Sage 200.

Is it claimable? Certain types of input VAT are not claimable under VAT126.

You cannot claim VAT for business activities, only for non-business activities.

If you have used a tax code on a purchase that is included in the VAT report, but it is for a business activity, then this will need to be removed from list of transactions that you include in the VAT126 submission.

For advice on what you can claim in the VAT126, contact your professional advisor or HMRC.
Error corrections.

If you have reversed an incorrect or unwanted bank receipt with a bank payment as an equal and opposite entry, these bank payments need to be removed from the list of transactions that you include in the VAT126 submission.
Cash Book Standing Orders and Direct Debits.

When you set up new standing orders and direct debits, you should include a Description for the transaction, and also check that the supplier's account includes their VAT number (on the Trading tab).

If you haven't done this, then you will have to manually enter these details in the list of transactions that you include in the VAT126 submission. If you add these details to your current Cash Book Standing Orders and Direct Debits, this ensure that these details are included in future VAT reports, so you don't have to enter them manually.

What happens when

Produce the final VAT Return

This produces:

Your final VAT Transactions (Education) report (Purchase Transaction Details for VAT126).

This report contains the details of your VAT transactions which you can use for your VAT126, that you send to your LEA or the HMRC (for academies).
The standard VAT Return that a business would normally send to the HMRC. This is not generally required by most schools.
Your final VAT Return. Send or submit this to the HMRC
- If you've set up Online VAT submissions, you can send it directly to the HMRC.
- A copy is printed for your records, or for you to manually send to HMRC.
The VAT Transactions - Codes Included in the VAT Return report showing the transactions included in the VAT Return.
The VAT Transactions - Codes Not Included in the VAT Return report, showing the VAT transactions that are excluded from the report. These are transactions that have a VAT rate that's not set up to be included in a VAT ReturnVAT report .

What happens when I submit online to HMRC?

If your submission is not successful

You will see a failed submission message.
Click the link to view the submission log.

This shows the submission error code for your VAT Return. These codes are generated by HMRC and provide an explanation for the failure of the return.

Note: After closing the Sage Internet Submissions wizard, you cannot view the submission log for failed returns.

Click More Info to see an explanation of the error code.

For further explanation of the most common errors, see Common online submissions error messages (UK only).
To re-submit your return:

Open: Revenue and Submissions > VAT Analysis | Complete Period Totals.
1. Select the failed submission, which is highlighted in orange.
2. Click Re-submit.
3. Check your contact details and re-enter your HMRC User ID and Password. Confirm the password and click OK.
4. Follow the steps in the VAT Submission wizard.

What happens when I submit online to the Irish Revenue?

When you send the VAT 3 file to the Revenue, via your Revenue Online Services (ROS) account, the file is validated. To make sure that the VAT 3 file produced by Sage 200 passes this validation:

We recommend that your VAT periods are the same as the ROS guidelines.
The start date should always show the first day of the month of the given tax period.
The VAT 3 file must have a start and end date in the same year.

Note:

You can recreate the VAT 3 file from the record stored in Sage 200, if necessary:

Open Revenue and Submissions > VAT Analysis | Completed Period Totals.
Select the relevant Return and click Re-submit.
Choose where to save the VAT 3 file.

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