How journal entries affect the VAT Return

Summary

How journal entries affect the VAT Return in Sage Accounting.

Resolution

This explains how to include journals on 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

Go to Adjustments then Journals.
Select New Journal.
To post a VAT amount as a journal, use the VAT on sales or VAT on purchases nominal ledger.
Tick the checkbox within the Include on VAT Return column.
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.

Ledger Account	Default Nominal Code	Credit or Debit	Affects the VAT Return
VAT on sales	2200	Credit	Increases Box 1
VAT on sales	2200	Debit	Decreases Box 1
VAT on purchases	2201	Credit	Decreases Box 4
VAT on purchases	2201	Debit	Increases Box 4
Any other ledger account		Credit	No effect
* Any other ledger account		Debit	No effect

Solution Properties

Solution ID: 222001000101238
Last Modified Date: Mon Oct 28 09:30:12 UTC 2024
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