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VT Transaction+

Navigation: Value Added Tax

Introduction

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If you are registered for VAT, you normally have to charge your customers VAT on your sales and hand that money over to HM Revenue and Customs (HMRC). Similarly, if you are charged VAT by your suppliers you can normally recover that money from HMRC. Typically every quarter you have to complete a VAT return showing the amount due to HMRC and pay that amount. You are also required to show on the VAT return the total value of your sales and purchases excluding VAT.

You should tick the VAT registered box in the VAT dialog (Set Up menu) if you are registered for VAT. When this box is ticked, boxes for entering VAT appear in the invoices and payments dialogs.

When you enter invoices and payments, the VAT amounts that you enter are automatically entered to the VAT input and output accounts. Any entries in these accounts not in a previously saved VAT return form the basis for the next VAT return that you create.

This help topic is not intended as a substitute for the leaflets and guidance issued by HMRC which can be found at https://www.gov.uk/topic/business-tax/vat. You should consult your accountant if you are in any doubt over how to use the VAT features in VT Transaction+.