Table of Contents
Running a VAT Return
To run a VAT Return, you first need to create the VAT record that summarises all VAT elements within the specified date range, and then post it.
Creating the VAT Return Record
Navigate to Nominal > VAT Return.
Click on the ➕ Open VAT Return button at the top left of the grid.
For VAT Return date is populated automatically according to the VAT Return frequency (e.g. Quarterly) and the 'Last VAT return date'. You can modify it.
Select + Open to create a new VAT Return record.
A new record with OPEN status is created and opens in a new window.
⚠️ Do not use this data for tax filing, the VAT Return is not processed yet.
Have a final look at:
All the VAT elements picked up in the Summary by VAT tab.
The full list of relevant transactions in the Detailed Transactions tab.
The single Input and Output computations (VAT amount, Amount, Non-refund amount) at the bottom of the window.
The Total VAT owed (= Input + Output) displayed in orange.
If everything looks right, click on Process.
Next, you'll need to post the VAT Return record.
Posting the VAT Return Record
After creating a new VAT Return record, when you click Process:
The window displays the accounts where your VAT debit and credit records, both Input and Output, will be posted: the VAT Control Account (debit) and the Annual VAT Account (credit).
Select Post (green button at the bottom right corner) and then Process.
In the VAT Returns tab, a new VAT Return Ref. record will show under Processed status.
Click on the newly generated ID under the Tran ID column to check if the transaction has been posted properly against the VAT accounts.
🧠 Good-To-Know Use the values in the VAT box and the Amount Box columns while filing your VAT Return on the MTCA website.
🌟 Bonus reminder: Pay and Reconcile
🌟 Bonus reminder: Pay and Reconcile
💸 Pay
The payment to MTCA needs to be posted in a new journal entry as follows:
Credit the Bank Account of your choice to decrease the assets (money is going out).
Debit the VAT Annual Account to decrease the liabilities.
✅ Reconcile
After submitting the annual VAT return, reconcile the VAT Control Account with the Annual VAT Account. This involves comparing the total VAT recorded in the VAT Control Account with the advance payments made.
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