| | How the VAT Return calculates |
| Description | If your business is VAT registered, you must submit a VAT Return to Revenue Online Services (ROS) every two months. Sage Accounting automatically calculates the VAT amount due depending on your VAT scheme which rate you apply to your transactions. |
| Resolution | ▼ Invoice basis If you calculate VAT on an invoice basis, the VAT Return calculates from the VAT element of your: - Invoices and credit notes
- Other payments and receipts made through the Banking option
- Journals posted to the relevant VAT nominal codes
How the VAT Return calculates: | T1 | The total VAT on sales – This includes the VAT element of:
- Sales invoices
- Sales credit notes – Credit notes deduct from the value in this box
- Bank, cash and visa receipts
- Journal debits or credits posted to the VAT on sales nominal code
The VAT Return includes reverse charge VAT for standard or lower-rated services purchased from EU or non-EU suppliers. | | T2 | The total VAT on purchases – This includes the VAT element of:
- Purchase invoices
- Purchase credit notes – Credit notes deduct from the value in this box
- Bank, cash and visa payments
- Journal debits and credits posted to the VAT on purchases nominal code
| | T3 | The total amount of VAT payable. If the amount in T1 is greater than the amount in T2, the difference appears here and is payable to Revenue. | | T4 | The total amount of VAT that’s repayable. If the amount in T2 is greater than T1 the difference appears here, and you can reclaim from Revenue. | | E1 | The total value of the sale of goods to VAT registered EU customers, excluding VAT. The Net value of destination VAT sales for OSS goods. | | E2 | The total value of purchases of goods from VAT registered EU suppliers, excluding VAT. | | ES1 | The total value of the sale of services to VAT registered EU customers, excluding VAT. | | ES2 | The total value of purchases of services from VAT registered EU suppliers, excluding VAT. | | PA1 | The value of goods imported under postponed accounting. | ▼ Cash basis If you calculate VAT on a cash basis, the VAT Return calculates from the VAT element of your: - Customer receipts, refunds and any payments on account
- Supplier invoices and credit notes
- Other payments and receipts made through the Banking option
- Journals posted to the relevant VAT nominal codes
The VAT Return calculates tax at invoice, not payment, for goods or services bought or sold to EU or non-EU VAT-registered parties. How the VAT Return calculates: | T1 | The total VAT on sales – This includes the VAT element of:
- Customer receipts
- Customer payments on account
- Customer refunds – Refunds deducts from the value in this box
- Bank, cash and visa receipts
- Journal debits or credits posted to the VAT on sales nominal code
The VAT Return includes reverse charge VAT for standard or lower-rated services purchased from EU or non-EU suppliers in this box. | | T2 | The total VAT on purchases – This includes the VAT element of:
- Purchase invoices
- Purchase credit notes – Credit notes deduct from the value in this box
- Bank, cash and visa payments, recorded through Other Payments
- Journal debits and credits posted to the VAT on purchases nominal code
| | T3 | The total amount of VAT payable. If T1 exceeds T2, the difference appears here as VAT payable to Revenue. | | T4 | The total amount of VAT repayable. If T2 is greater than T1 the difference appears here and can reclaim from Revenue. | | E1 | The total value of the sale of goods to VAT registered EU customers, excluding VAT. | | E2 | The total value of purchases of goods from VAT registered EU suppliers, excluding VAT. | | ES1 | The total value of the sale of services to VAT registered EU customers, excluding VAT. | | ES2 | The total value of purchases of services from VAT registered EU suppliers, excluding VAT. | |
|