Solution Properties
Solution ID:
220128150120580
Last Modified Date:
Mon Sep 21 13:12:45 UTC 2026
Taxonomy Path:
Case category//How do I...//governmental/legislative compliance
Author:
[email protected]
Republic of Ireland VAT Cash Accounting scheme
Description

Businesses that are VAT registered and use Sage 50 Accounts must produce and reconcile their VAT Return each month or quarter.

For further information about VAT, refer to the Revenue website.

Cause
Resolution

If you haven't already started your VAT Return, you can find out everything you need to know in our Help Centre.

How the VAT Return calculates

Box Details Tax codes included Transactions included
  VAT charged on supplies of Goods & Services. T0, T1, T2, T3, T6, T10, T11, T12, T13, T14, T16, T19, T20, T21, T24, T27, T28, T31, T32, T35, T36 SR, SA, BR, VR, CR, SP, JC
  VAT due on intra-EU acquisitions. T8, T18, T25, T26, T29, T30, T33, T34, T37, T38, T30 - T52 PI, PC, PP, BP, VP, CP, PR, JD
T1 Total VAT due, therefore the total of boxes 1 and 2. N/A N/A
T2 Total VAT on purchases. T0, T1, T2, T3, T6, T8, T10, T11, T12, T13, T14, T16, T18, T19, T20, T21, T24, T25, T26, T27, T28, T29, T30, T31, T32, T33, T34, T35, T36, T37, T38, T39 - T52 PI, PC, PP, BP, VP, CP, PR, JD
T3 Net Payable. Excess of T1 over T2 Excess of T1 over T2
T4 Net Repayable. Excess of T2 over T1 Excess of T2 over T1
E1 Total goods to other EU countries. T4 SR, SA, BR, VR, CR, SP, JC
E2 Total goods from other EU countries. T5, T7, T8, T15, T17, T18, T25, T26, T29, T30, T33, T34, T37, T38 PI, PC, PP, BP, VP, CP, PR, JD
ES1 Total services to other EU countries. T22 SR, SA, BR, VR, CR, SP, JC
ES2 Total services from other EU countries T23, T24 PI, PC, PP, BP, VP, CP, PR, JD
PA1 Value of goods imported under Postponed Accounting (net plus carriage, insurance, and freight (CIF)) T39 - T50 PI, PC
For information only:
  Total value of sales, excluding VAT. T0, T1, T2, T3, T4, T6, T10, T11, T12, T13, T14, T16, T19, T20, T21, T22, T23, T24, T27, T28, T31, T32, T35, T36 SR, SA, BR, VR, CR, SP, SD, JC
  Total value of purchases, excluding VAT. T0, T1, T2, T3, T5, T6, T7, T8, T10, T11, T12, T13, T14, T15, T16, T17, T18, T19, T20, T21, T23, T24, T25, T26, T27, T28, T29, T30, T31, T32, T33, T34, T35, T36, T37, T38, T39 - T52 PI, PC, PP, BP, VP, CP, PR, PD, JD

TIP:

Find out more about transaction types.

Confirm the figures on the VAT Return

Once you’ve calculated your VAT Return, you can select to see a breakdown of. If you want to see the included transaction, then double-click the value.

You can then use the reports to confirm the figures in each of the boxes on the VAT Return. Select the relevant box below to see which reports to run to confirm the values are correct.

  1. On the VAT Return window, press Reconciliation reports and open the Reconciliation reports folder.
  2. Select VAT Cash Accounting.
▼ VAT charged on supplies of Goods and Services

The value in box 1 is to agree with:

  The VAT amount of the transactions on the Day Books: Customer Receipts (Detailed) report.
Plus The VAT amount of the transactions on the Day Books: Bank Receipts (Detailed) report.
Plus The VAT amount of the transactions on the Day Books: Cash Receipts (Detailed) report.
Plus The VAT amount of the transactions on the Day Books: Credit Card Receipts (Detailed) report.
Plus The value of any journal credits posted to the Sales or Purchase Tax Control Accounts with a vatable tax code.

NOTE:

Run the Day Books: Nominal Ledger report to check which journals are posted to these control accounts.  
Plus The VAT value of T20 reverse charge invoices and T24 invoices when they’re linked to T1.

There isn't a standard report for these values. To check the transactions:

  1. Select T20 and T24 on the VAT Return.
  2. If you need a report, amend the T9 Transaction Listing report to show T20 and T24 transactions.

For help with editing reports, contact Sage Report Design Technical Support.
Less The VAT amount of the transactions on the Day Books: Customer Payments (Summary) report.

Why the values can differ

  • You've used different date ranges when calculating the VAT Return and running the day books reports
  • You've excluded one or more of the bank accounts from the day books reports
  • You've entered a VAT amount transaction where the tax code doesn't appear on the VAT Return
  • You've included unreconciled transactions from before the specified VAT period on the VAT Return. They don't appear on the day books reports
  • You've created manual adjustments. To view or amend manual adjustments:
  1. In the VAT Return window, select the Reconcile VAT Return button, then select the View adjustments button.
▼ VAT due on intra-EU acquisitions and postponed VAT

The value in this box is the notional VAT calculated on T8 transactions when T8 is linked to T1. This figure is to be 23 % of the value of your T8 transactions.

NOTE:

Notional VAT is for Revenue reporting only and doesn't affect your VAT liability.

▼ [T1] - Total VAT on Sales

This is the sum of box 1 plus box 2.

▼ [T2] - Total VAT on Purchases

The value in this box is to agree with:

  The VAT amount of the transactions on the Day Books: Supplier Invoices (Detailed) report.
Less The VAT amount of the transactions on the Day Books: Supplier Credits (Detailed) report.
Plus The VAT amount of the transactions on the Day Books: Bank Payments (Detailed) report.
Plus The VAT amount of the transactions on the Day Books: Cash Payments (Detailed) report.
Plus The VAT amount of the transactions on the Day Books: Credit Card Payments (Detailed) report.
Plus The value of any journal debits posted to the Sales or Purchase Tax Control Accounts with a vatable tax code.
Plus The value of T20 reverse charge transactions and T24 transactions when they’re linked to T1.

Why the values can differ

  • You haven't cleared values from previous VAT Returns from the Purchase Tax Control Account
  • You entered journals directly to the Purchase Tax Control Account with a tax code that doesn't appear on the VAT Return. For example, T9
  • You've specified different date ranges when calculating the VAT Return and the balance on the Purchase Tax Control Account
  • You've entered an opening balance onto the Purchase Tax Control Account
  • You've entered a VAT amount transaction where the tax code used doesn't appear on the VAT Return
  • You've manually added notional VAT to T8 transactions
  • You've included unreconciled transactions from before the specified VAT period on the VAT Return. They don't appear on the day books reports
  • You've posted transactions with a vatable tax code but the transaction types don't appear on the VAT Return, such as purchase discounts
  • You've created manual adjustments. To view or amend manual adjustments:
  1. In the VAT Return window, select the Reconcile VAT Return button, then select the View adjustments button.
▼ [T3] - Net Payable (Excess of T1 over T2)

This is the sum of boxes 3 and 4.

If box 3 is greater, it indicates the amount of money you owe to the Revenue.

▼ [T4] - Net Repayable (Excess of T2 over T1)

This is the total of boxes 3 and 4.

If box 4 is greater, it indicates the amount of money the Revenue owe you.

Steps to duplicate
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