Prerequisites
The VAT Return Screen
- VAT Returns Tab
- VAT Transactions Tab
Pop-up Windows from Clickable Values

Prerequisites 👀

Ensure all financial documentation (bank statements, sales and purchases postings, etc.) for the VAT return period is recorded in Indigo Business.
Double-check you've selected the right VAT Code for each transaction. Choose the Z VAT Code for transactions not applicable for VAT.
Make sure you covered your Reconciliations for your accounts.
Set up the VAT Return Frequency in Settings & Pref. > Company Settings.

The VAT Return Screen

To access the VAT Return page, navigate to Nominal > VAT Return on the left side menu.

In the VAT Return page you can access two tabs which both display grids: VAT Returns and VAT Transactions.

VAT Returns Tab

In the VAT Returns tab you can see details about all existing VAT Returns, such as status (Open, Processed, Reversed), when they were created, and by whom.

Buttons

At the top left of the grid there is a set of action buttons.

These are, from left to right:

🔄 Refresh: refreshes the grid content.
📤 Export: exports the grid's content.
👁️ View VAT return: opens the VAT return record.
➕ Open VAT return: generates a new VAT return record with an Open status.
- Check what to do next 👉 here.
✔️ Mark as submitted: use this after you’ve officially submitted the VAT Return to CFR and not just processed it in Indigo Business.
↔️ Reverse: reverses the VAT Return (also doable from the VAT Return record itself).
👁️‍🗨️ Hide/Show Reversed: use to display or hide reversed records.

Grid

The grid displays the following details:

VAT return ref.

This is a clickable, unique identifier that works as a container for the transactions picked up by the VAT return, whether they're processed or not. Click on a value to open the VAT Return window.

Date: the date up to which you ran the VAT return (not the submission date).
VAT: the calculated VAT amount.
State: the state of the VAT return record. (Open, Processed, Reversed.)

Tran ID

This clickable label is given to each new transaction generated involving the VAT accounts when posting the VAT return. Click on a value to open the Transaction window.

Reversal tran ID

Another clickable label, this is the ID of the reversal transaction tied to the VAT return. Click on a value to open the Reversal Transaction window.

Created by: who created the VAT return record.
Created on: when the VAT return record was created.

VAT Transactions Tab

Every transaction item with an element of VAT will be displayed in the VAT Transactions tab. Transactions with the special VAT code (Z) applied will not show in this tab since they are tax exempt.

Buttons

At the top left of the grid, there is a set of action buttons (from left to right):

🔄 Refresh: refreshes the grid content.
📤 Export: exports the grid's content.
📕 Post VAT journal: use it to post a VAT journal.
All/Processed/Unprocessed: these are status filters. Use them to show records based on the selected status.

Grid

The grid displays the following details:

VAT Return Ref.: shows to which VAT Return the transaction is tied to (empty when there isn't any related processed VAT Return yet).
Tran ID: the transaction ID assigned after posting the transaction in the nominal ledger. You can check it in the Audit Trail section.
Date: the transaction date.
A/C name: the account name against which the transaction is posted.
Partner: the partner specified when you originally posted the transaction.
VAT name: the name of the VAT code applied to the transaction.
Foreign: the transaction amount in foreign currency (if applicable).
Foreign VAT: the computed VAT amount in foreign currency (if applicable).
Local: the transaction amount in the company's base currency.
Local VAT: the computed VAT amount in the company's base currency.

🤔 Remember: When you post a transaction that includes VAT, the system records the VAT amount in the VAT Control Account (debit for purchases, credit for sales). Its balance status shows whether you owe taxes to the tax authorities or if you're due a refund.

The VAT Return process transfers the VAT Control Account balance to the Annual VAT Account. Want to learn more? Check 👉 this article out.

Pop-up Windows from Clickable Values

In both the VAT Returns and VAT Transactions grids, there are clickable values which open their own pop-up windows. Let's explore them below. 🔍

The VAT Return Window

Select a value under the VAT Return Ref. column to open the VAT Return pop-up window.

Here's what you'll find:

Header details: the VAT Return Reference and the VAT Return Date.
Summary by VAT tab: shows a breakdown of VAT transactions grouped by VAT code, showing the applied rate, taxable amounts, VAT amounts, and any non-refundable portions.
Detailed Transactions tab: lists all the VAT-related transactions, per date, collected by the VAT return record. You can also see the involved accounts, VAT codes, taxable amounts, and VAT amounts.
Footer details: the Total VAT owed broken down into Input and Output totals.
Buttons: Reverse (top right), Cancel, and Mark as Submitted (bottom right).

The Transaction Window

Select a value under the Tran ID column to open the Transaction pop-up window.

Here you can see the transaction that resulted from posting the VAT return. You can consult how the VAT Control Account and Annual VAT Account have been debited and credited respectively in the A/C Name and D/C columns.

The Reversal Transaction Window

Select a value under the Reversal Tran ID column to open the VAT Return pop-up window.

Here you can see the transaction that resulted from reversing the VAT return. You can consult the debits and credits created against the VAT Control Account and Annual VAT Account to cancel the original postings, respectively in the A/C Name and D/C columns.