Under the sales invoice basis, vat becomes payable to the revenue once a sale is made/ sales invoice is raised irrespective of whether or not settlement of the invoice has been received.

Total VAT on Sales

Less      Total VAT on Purchases

Equals   VAT Payable/(Reclaimable) from the Revenue

Reports > Vat Reports > Normal Vat Reports

• Date From- Enter the first day of the VAT period which you are preparing
• Date To- Enter the last day of the VAT period which you are preparing
• Prepare- The report will now be prepared. 

A detailed report is generated detailing by transaction the VAT element payable on sales invoices raised and reclaimable on purchase invoices posted with the VAT rate applied to each transaction also detailed on the right-hand side of the report. The report consists of two columns, one in respect of purchases and one in respect of sales.

The total VAT in respect of Purchases and Sales is totalled to give a balance reclaimable (reflected in the Purchases column) or payable (reflected in the Sales column) to the Revenue.

Summary   

Using the Summary button will show a summary of the total VAT on Purchases and the total VAT on Sales reflecting the balance payable/(reclaimable).

Total VAT on Sales

Less      Total VAT on Purchases

Equals   VAT Payable/(Reclaimable) from the Revenue

Tagging                                                                  

Once satisfied that the Normal VAT Report is correct and has captured all transactions, tick the box to tag the transactions.  This is a method of marking the invoices which have now been included in a return to the Revenue and so excludes such transactions from future returns. The tagging process prevents the amendment of any tagged transactions.

N.B. Once the report has been tagged the tagging process cannot be reversed, it is advisable to take a backup before tagging if you may need to restore the company accounts to the point before tagging.

Restoring a back taken before the tagging is the only method of Reversing this process, however, any data entered between the date of the backup and the current date will be lost if a backup is restored.

Upon preparing a VAT return, all supporting reports used should be printed at the time of the return preparation and maintained for future reference. For any issues or subsequent revenue VAT audit which may arise concerning the return it is important that you have a paper trail to refer to.  This will also simplify the financial year-end reconciliation of vat for the accountant.