The VAT Reports in Sage 50 permit CSV files exports to submit the VAT returns to HMRC. It is a part of MTD designed to ensure the effectiveness of the tax system. This process includes calculating how much vat a specific organization should pay or HM Revenue & customs reimbursements. Hence before creating the final VAT Return it is essential to reconcile the VAT Transactions to identify the correctness of the transactions. The below article will guide you on how to reconcile VAT on Sage 50.
Related article: Sage 50 2022 Payroll Tax Update
How to Prepare VAT Return on Sage 50
💠 Locate VAT and then hit VAT Return
💠 If needed then back up the data by clicking on the Backup option
💠 Write the VAT return date range
💠 If you need to add the transaction in the particular period that has already been reconciled then choose the option named Include reconciled transactions
💠 To modify the checks that are running are being calculated using VAT Return
💠 Hit Calculate VAT Return
💠 Click the Include button to add these transactions and ignore if not.
How to Reconcile Sage 50 VAT Reports?
💠 For VAT return reconciliation you must verify the transactions in the VAT returns against the transactions in the Purchase, Sales, & nominal ledgers. To collect the value-added tax there is a need for periodic VAT returns with the taxable & tax amounts for VAT registration point of supply. These returns must be compatible with reports with transactions with charged VAT. Following is the list of instructions to reconcile the VAT Transactions in Sage 50:
💠 Verification results to view the checks then click View results
💠 Perform the adjustments using the program date to automatic VAT posting. In case you require to modify the posting date then you have to change the software date. To perform this, locate the Settings option and then Change Program Date.
💠 If needed to adjust the VAT return values click Make Adjustments
💠 Hit the required Adjustment field then write the description of the change along with the value
💠 Choose Save option and then Close
💠 Confirms VAT Return figures on the Reports:
💠 Once you calculated the VAT returns to see the breakdown of the figures give a click on the desired figure.
💠 Go to the VAT Breakdown window and double-click on the value to view the list of transactions in total.
💠 Next, use the reports to check the figures in the VAT return box
💠 Choose the desired box to view the required reports to run for confirming the values are right or not
💠 Open the reconciliation reports click reconciliation reports and then hit VAT Cash scheme.
💠 After this print the VAT reconciliation Reports
💠 To do this choose the VAT return and then select the below VAT return type
💠 VAT return: If needed to display information from the window named value-added tax return
💠 Summary: The VAT breakdown window with information
💠 Detailed: VAT Breakdown transactions windows with in-depth information
💠 Adjustments: It displays the list with VAT return adjustments
💠 Earlier unreconciled transactions: It helps to view the list of unreconciled transactions before the VAT return period.
💠 We recommended that you should print and keep the report details.
💠 Choose the desired output and then hit the Run option
💠 Now complete the Print using Save As or the required email window
💠 Now flag the reconciled transactions by clicking VAT return and then hit Reconcile VAT Return
💠 Choose yes option
Sage 50 accounts calculate VAT through tax codes to determine the applied rate. After posting the Sage accounts transactions you must fill the relevant tax code. To view, the tax code applied in specific codes and settings information. here are the steps to view the tax codes:
💠 Locate Settings tab
💠 Hit Configuration option
💠 Select Yes to close open windows
💠 Click on “Tax Codes”.
How Would I Open the T9 Transactions on the VAT Report?
Ans: Fellow the below Steps to open the T9 Transactions on the VAT Reports:
🔶 Locate Settings button
🔶 Click Configuration
🔶 Hit the Yes option to close all active windows
🔶 Click Tax codes
🔶 Now it displays the list of tax codes
🔶 You need to choose the tax code T9
🔶 Hit Edit option
🔶 Now delete the include in check box named VAT return
🔶 Hit OK and select Apply
🔶 Close the option “No” in the prompt.
Also Read: How to Resolve Sage Taxation Error 1603
What If I am Unable to Reconcile Sage 50 VAT?
Here, the article about Reconcile VAT on Sage 50 completes. Hopefully, the information is helpful. If you still failed to process VAT reconciliation then give a call to the Sage 50 help desk team or use a live chat.
🔶Frequently Asked Questions🔶
Q1. What Types of Tax Codes Do I Get in Sage 50?
Ans: 🔶 T0
Q2. What Do I Need to Reconcile Sage 50 VAT Return?
Ans: 🔶 Verify the net value of inputs and output totals for each associated VAT code in the VAT Return Transactions report
🔶 Now perform the comparison of the total of the purchase, sales Va table transaction reports, and the non-trading transactions reports of the Nominal Ledger
🔶 Next, add the sum of the particular vatable transactions reports, ensure that the total displays the totals of the input and outputs on the VAT return transactions report.
Q3. How Would I See the Past Un-Reconciled VAT Transactions in Sage 50?
Ans: A List of the earlier unreconciled transactions appears once you hit Calculate VAT return option. Hit the Print option to print the list. It will display Reconcile VAT Return window to print the list of the transactions. Hit Print VAT Return and then choose earlier unreconciled transactions.
Q4. Should I Need the Reconciliation Reports to Reconcile Sage 50 VAT?
Ans: Reconcile VAT return reports contains the list of reports to reconcile the VAT return values. Each report is VAT Scheme specific. This helps in checking the VAT reports have been submitted correctly. Moreover, you can find the information by clicking on the company tab, hit the Tasks pane, and then choose VAT reconciliation.
Q5. How Should I Calculate the VAT Return in Sage 50?
Ans: When you use the VAT Cash accounting scheme then the Sage Accounts VAT return estimates the input and output of the tax with an associated element of the sales payments, sale receipts, and sales payments on the account. Once you post the purchase payment then determine the tax code to use the VAT element of Bank, visa receipts and cash, journal entries values posted with desired tax code, and discounts value.
Q6. What If I Need to Check the Transaction Reconciliation Status in Sage 50?
Ans: 🔶 Search for the transactions
🔶 Now verify the VAT column as below:
🔶 N- Transactions has not been reconciled
🔶 R- Reconciled transaction
🔶 Non-vatable transactions
🔶 Now delete the option named Include in the checkbox labeled VAT return
🔶 Hit OK
🔶 Select Apply and then close the prompt to save the applied changes
🔶 Click No button.
Q7. Can I Undo the VAT Reconciliation?
Ans: No, it is not possible to undo a VAT reconciliation process. To fix this you have to restore a backup before reconciling the VAT return.