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Post Info TOPIC: Sage VAT


Veteran Member

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Sage VAT


Hi everyone

Can someone please help me I have made an error on a VAT return and I am worried I dont know how this has happened or how to correct it. The VAT Breakdown looks like this:

 

T/C                      Invoices                 Credits               Payments               Journal Debits

T0                            0                           0                         0                      36525.92

TI                            23501.36              0                         591.44             0.00

Etc

Total                      23501.36               0                       591.44              36525.92

                                                                                                             Subtotal  £60618.72

 

Can anyone tell me what I have done wrong???

Thanks in advance

 

Taylor



-- Edited by Taylor1 on Thursday 4th of June 2015 05:23:32 PM

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Rachel Tyler



Master Book-keeper

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Hi Taylor
Im not really sure what you are getting at here - this appears to just show one line of items on your vat from the sage drill down facility? You can actually click on each of these to drill down further, but maybe it would be easier to suggest you click on the print facility...this opens up a further box with the option to print but better still a 'preview' function - then you can look down it and see if there is anything glaringly wrong. What is it that you think you have done wrong? One thing that stands out - should the journals be T0 or T9? T0 could be correct, but I cannot comment as I dont know what they represent. (Most of mine are T9 type transactions unless Im doing adjustments for imports to get the figures from a C79 document in for eg).

Perhaps you could provide some more information so we can try to help?

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 Joanne 

Winner of Bookkeeper of the Year 2015, 2016 & 2017 

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.

You should check out answers with reference to the legal position



Veteran Member

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That is the VAT detail report so its saying its claiming back £60k in purchases however although the journal is the wrong T code because it should be T9 it still should not be claiming VAT on a T0 code but it is

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Rachel Tyler



Master Book-keeper

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Ive never seen a VAT detailed report like this - can you please attach a copy of the VAT100 (return) screen with relevant confidential info deleted?

Any journals that are coded incorrectly will need altering - if they shouldnt be reported on the VAT return at all they will need changing to T9.

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 Joanne 

Winner of Bookkeeper of the Year 2015, 2016 & 2017 

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.

You should check out answers with reference to the legal position



Veteran Member

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I think I have attached it right the problem I have is the return was so overdue i submitted it and then realised the problem :( 



Attachments
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Rachel Tyler



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@Taylor1

Your assertion that "it should not be claiming VAT on a T0 code" is incorrect.

The settings for the tax codes tell Sage whether or not to include something on the VAT return, and where it appears will be determined by the amounts in the net and VAT fields, along with the transaction types. So you can post a payment as TO (for example) but override the tax amount of 0.00 (assuming T0 is set as 0%, and set to appear on a return) with £10. That £10 will therefore be treated as input tax on a VAT return.

In the case of a journal, if it is given a tax code that puts it on the return (such as T0) where it appears on the return depends on whether it is a journal debit or a credit (this affects the inputs and outputs) and the nominal code it is posted to: If it is posted to the inputs/outputs nominal codes, it is part of the VAT, otherwise part of the net.

If it sounds complicated... that's because it is. For most users, it shouldn't be an issue.

If memory serves, anyway.

I'm going to hazard a really off the cuff guess now, and suggest that the journals we're seeing are the result of the previous quarter's VAT journals (moving the inputs and outputs to the liability code) posted as T0 instead of T9.

(I'm sure I recall from quite a few years back a Sage update that the relevant default tax codes for such journals set to T0 instead of T9 - you may perhaps have been hit by that problem?)

If that's the problem, your best solution is to print the return out, adjust the figures and manually submit the return with the correct ones.

The setting that caused this will be something like Settings -> Company Prefs -> VAT -> Exempt tax code.



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Vince M Hudd - Soft Rock Software

(I only came here looking for fellow apiarists...)



Master Book-keeper

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Ok - its the bit in green and white that i need to see - so the actual VAt return (which is sitting at the back of the picture you have attached. Ive not used 2015 sage version yet so bear with me please on this one! There is something that jumps out - the VAT journals part of the picture indicates that theses are dating July 2014 - so I need to know what dates you put on the VAT return (I can see that from the VAT 100 ie the green bit when you send it!) and also - did it ask you do you want to include unreconciled transactions and what did you answer?

Also - what it the actual VAT period you are supposed to be covering and Im assuming it standard VAT from what Im seeing.

__________________

 Joanne 

Winner of Bookkeeper of the Year 2015, 2016 & 2017 

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.

You should check out answers with reference to the legal position



Expert

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Date:

Okay, seeing that screen grab, that old default problem wasn't the cause of the problem.

It looks like you've journalled something incorrectly to 2201 - so, as I said, a T0 ("on the tax return") code to the inputs tax code.

Since it's to 2201, it *might* be that reversing the journal (same tax code) will cancel it out on the tax return, and you can then post the journal as it should have been/to the correct code. I wouldn't like to say for certain that would work, though.

Take a backup first and try it.

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Vince M Hudd - Soft Rock Software

(I only came here looking for fellow apiarists...)

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