How journal entries affect the VAT Return

What you need to know

You use journal entries when you want to move values from one ledger account to another.

By default, journals don't appear on the VAT Return. However, you can include your journals on the VAT Return, if required.

Include a journal on a VAT Return

1. Go to Adjustments then Journals. 
2. Select New Journal.
3. To post a VAT amount as a journal, use the VAT on sales or VAT on purchases nominal ledger.
4. Tick the checkbox within the Include on VAT Return column.
5. Select Save when you're done.

How the journal affects the VAT Return

The following table explains which box on the VAT Return updates after entering a journal. This is determines by a combination of the ledger account and whether the journal line is a debit or credit.

Create a journal

Edit a journal

Copy a journal