1.Set up your VAT details
Enter your VAT registration number by selecting Set Up>VAT. Tick the 'VAT cash accounting' box. (Note: VT Cash Book is only suitable for accounting for VAT if you are on the cash accounting scheme for VAT. If you use the standard accounting method for VAT, you will need to use VT Transaction+.)
2.Enter VAT on transactions
You can then enter VAT in the VAT column of the Payments And Receipts dialog. For more information on entering VAT please refer to Entering VAT.
More complex VAT transactions such as domestic reverse charge VAT and VAT on overseas transactions cannot be entered in VT Cash Book; you will need to use VT Transaction+.
3.Set up MTD (Making Tax Digital) for VAT
Before you can submit a VAT return to HMRC, you must be set up for MTD. Please follow the steps at Setting up MTD: businesses; or Setting up MTD: agents (if you are an agent submitting VAT returns through your Agent Services Account). For more information on MTD, please refer to the MTD for VAT chapter.
4.Generate and submit a VAT return
a)Click on the VAT button on the toolbar at the top of the screen:
b)Select New VAT return:
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c)Specify the period for the VAT return:
d)This generates the VAT return on the right of the window. For further information on generating a VAT return, please refer to Creating a VAT return.
| Note: the return will include all transactions within the scope of VAT that have not been included in a previous VAT return created in the same file, including any transactions dated before the return. You may or may not need to include the older transactions. If you do not, please exclude them by deleting the current return, creating a dummy VAT return for the period covering the older transactions, then re-running the current return - for more details please refer to Old transactions appearing on current VAT return. |
e)Click on the VAT button again to return to the VAT return window. To submit the VAT return, click on it from the list of returns on the left and select Submit VAT return to HMRC:
f)To pay a VAT return, please refer to the steps in Paying a VAT return
If you get a 'MTD mismatch' error, either the VAT registration number you have entered is wrong or you have not correctly set up MTD. Please refer to The MTD Error for details.
If you get a 'Internal server' error, either there is an issue with HMRC's servers or the sign-up process for MTD is incomplete. Please refer to Server errors for details.
