VAT Calculation : Netvisor

Financials > Company obligations > VAT Calclulation

The VAT calculation is generated under the heading "Obligations of the company", where you will find a VAT calculation. By default, the program automatically retrieves the calculation for the current period. By selecting Show account balances, the accounts from which the invoice data has been retrieved are displayed in the VAT calculation. This will help you to find out how the figures in the invoice have been formed. You can then drill down from the account to see the vouchers that have been posted to it. Unnecessary zero balance rows are hidden from the calculation by default, making a more concise report easier to process. If necessary, the user can retrieve the zero balance rows from the search criteria.

Before you make a VAT entry, check the following:

Have all sales invoices for the period in question been sent/printed, i.e. have vouchers been created for them? (The date belongs to the period for which you are recording VAT).
Have all sales invoices for the period been processed?
Have all purchase invoices for the period been processed?
Have all purchase payments (payments) for the period been processed?
Have all statements for the period been processed?
Check the segregating vouchers (check the box with a tick to show only the segregating vouchers)
Check that there are no differences in the reconciliation view

In practice, check that there are no outstanding entries for the period in question.

If you have to make entries for that period later you have first to do bypass of VAT locking, fix which needed and then cancel bypass of VAT locking.

In the VAT calculation that opens, check and compare the items to make sure they are correct. Small rounding differences (a few cents) may exist, but this is perfectly normal and is due to the calculation calculating the totals without rounding.

Total taxes payable
Balance of the accounting VAT debt account for the target month
Total tax deductible
Balance of the accounting VAT receivable account for the target mont

The tax to be accounted for field that is displayed in the hoverbar is the amount to be paid to the tax authorities. If the amount is negative, this will not be paid by bank transfer, but will be returned to the company by the tax authorities in due course. The tax to be accounted for is calculated as Total tax payable - Total tax deductible.

Once the calculation has been verified as correct, the VAT invoice can be approved and a voucher can be generated from the kite bar that appears on the screen as the user browses the VAT calculation. The "Accept and create voucher" function creates a voucher in the accounting for the VAT for that month. The voucher type is always 'AT System generated' and cannot be changed. The voucher records the VAT on the tax account, i.e. in practice it clears the VAT payable and receivable accounts on the tax account. The default VAT refund account 1762 must be in the list of accounts for the VAT entry to be successful. Please do not delete/hide this account from the list of accounts.

Rounding

To be recorded as a rounding difference: any calculated VAT differences are recorded in a rounding difference account with a VAT voucher. This ensures that no balance remains in the VAT payable and receivable accounts after the VAT invoice has been entered.

If you wish to re-enter the VAT calculation using a different entry method, select the "Open lock" button on the VAT calculation. This will cancel the previously entered VAT voucher from the accounting, after which you can change the entry method and re-enter the VAT calculation.

Added a navigation option for the VAT calculation, which allows the user to easily go directly from the calculation to continue processing the VAT declaration once he has accepted the calculation:

Please note that if the calculation has to be modified afterwards and a bypass for VAT locking is made, the voucher for that month will be automatically invalidated at this point in the background and will be regenerated when the VAT is re-entered when the bypass is cancelled. Therefore, the cancellation of the bypass VAT locking will automatically redirect directly to the VAT calculation to ensure that the VAT is re-entered. From the view, press the "Accept and create voucher" button.

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