To Check your VAT Return using the Standard VAT Scheme

1. Print your Detailed VAT report from the Print VAT Return window.

2. From the Nominal Reports window, print the Nominal Activity Report, using the date range of your VAT return, and the nominal account range of your VAT on Sales and VAT on Purchases control accounts (2200 to 2201 by default).

3. Check that the balance in box 5 of your VAT return agrees with the net closing balance of your VAT on Sales and VAT on Purchases control accounts.

If this does not agree, check the following:

Does either the VAT on Sales or VAT on Purchases control account total include a value for a tax code which is not included on your VAT Return (e.g. by default T9 is not included on your VAT Return)?

When you ran your VAT Return, did Sage Line 50 find any transactions which were outside the date range but which had not yet been included on your VAT Return? If so, did you ask to include these on this VAT Return? For example, this could happen if a transaction has been posted with the incorrect date.

Have you posted VAT incorrectly using the Journals option?

If your answer to any of these questions is yes, this could be the discrepancy. Recheck your figures to see if your balances agree now.

4. If you still have a discrepancy, print the following reports and use these to help you to find the discrepancy:

Audit Trail. Items on the audit trail that are marked with an æNÆ in the VAT column are included when you calculate your VAT Return. Items that are marked with an æRÆ have already been included on your VAT Return, and have been reconciled for VAT so these are not included in this VAT Return.

Customers Day Book Reports.

Suppliers Day Book Reports.

5. If you still have a discrepancy, print the Day Books for your Bank, Cash and Credit Receipts and Payments and use these reports to try to find the error.

Your next step...

To Reconcile your VAT Transactions