VAT Return is a document in which you summarize your company’s operations for a certain period to inform the VAT office of how much VAT you have to pay or how much VAT you should be reimbursed for that period. You prepare and submit a VAT Return to the tax authorities at the end of your accounting period. Usually, it happens once a month or every three months.
The VAT Return includes the following information for the accounting period:
- Total sales and purchases
- The VAT amount you owe for sales
- The VAT amount you can reclaim for purchases made for your business
- Your VAT refund from the tax authorities
Normally, you deduct the VAT you paid on your business purchases or expenses from the VAT you charged your customers. Then only the difference is paid to the tax office.
If the VAT your company has charged to your customers exceeds the VAT you have paid, the tax authorities will refund the difference.
You are obliged to prepare and file VAT Returns even if there is no VAT to pay or reclaim.
In Codejig ERP, you generate VAT Returns not only as reports to be filed to the tax authorities but also as documents affecting the company’s bookkeeping accounts. Posted VAT Return performs the monthly close of the Input and Output VAT accounts and records the difference between the Output VAT and Input VAT amounts in the VAT payable account (if the VAT your company has charged to your customers exceeds the VAT you have paid) or in the VAT recoverable account (if the VAT you have paid exceeds the VAT your company has charged to your customers).
To access the VAT Return
- On the Codejig ERP Main menu, click the VAT tab.
- Under the VAT tab, click VAT Return.
VAT Return: General Area
VAT Return: Declaration Tab
VAT Return: Details Tab