Learn How To Submit VAT Returns Within Sage 200
Sage 200 is compliant with the HMRC Making Tax Digital scheme, which was introduced in April 2019.
In this tip of the week, we discuss how to submit your VAT Return within Sage 200.
Additionally, you can watch the short tutorial here to help better your understanding.
Setting Up Your VAT Return
Before you begin submitting a VAT Return, you must set your base currency to pound sterling.
To check this, go to Accounting System Manager > Settings > Currencies and Exchange Rates.
A pop out box will appear on your screen. Click into the ‘Settings’ tab (at the top of the box) and you will be able to view a list of all your currencies.
Your base currency will have a ‘Yes’ in the ‘Base’ column.
- You must be enrolled with the HMRC and have the HMRC User ID and password.
- To pay using e-Banking you must have installed the Sage 200 e-Banking components and configured e-Banking for the bank account you will be paying your VAT from.
- You can pay using supplier payments, but you must have had your application accepted for a supplier payments account.
You must enter your VAT details for your company. To do this go to Accounting System Manager > Settings > Company Details.
Within the Company Details pop out box, ensure your VAT registration number is entered and your Country Code is set to ‘Great Britain’.
Additionally, you must enable VAT submission in the Nominal Ledger > Utilities > Ledger Set Up > Ledger Settings.
Within the Nominal Ledger Settings pop out box, click on the ‘VAT Submissions’ tab at the top of the box, tick ‘Enable VAT submissions as a digital record as part of Making Tax Digital’.
Also on this screen, you will need to enter your VAT Contact Details, including your first name, last name, telephone number and a valid email address. (If you do not provide a valid email address, your submission will fail later on).
In the UK, if you have submitted your VAT Return online, you must also pay your VAT Return online. You can do this directly in Sage 200 using either the Sage e-Banking service, supplier payments, or on the HMRC website.
Submitting your VAT Return
To produce your VAT Return, go to Nominal Ledger > Period End Routines > VAT Analysis. Within the VAT Analysis pop out box on the screen, click into the ‘Current Period Return’ tab.
Check the VAT Return End Date is correct. If you need to change this date, you can do this by going to Utilities > Amend VAT Period End Date.
To view the transactions that make up the box total, click the relevant underlined total. This will show you the breakdown of what’s making up that figure.
If you click into ‘Standard Rate’, the screen will show all the transactions against that rate.
If you need to make any adjustments this can be done by clicking on the box titled ‘Adjustments’ at the bottom of the screen and typing in the reason for the adjustment, as well as the amount.
Once you click the ‘Close’ box, the adjustment will be saved.
Once you are happy that all figures are correct and you are ready to submit your VAT Return to the relevant authorities, select the ‘Produce VAT Return’ box.
At this stage, a pop out box will appear with tick boxes telling you the VAT Return can ONLY be produced ONCE. This means once the VAT Return is produced, you can no longer make any adjustments and it cannot be re-sent. To confirm you understand, tick the box.
There is also an option to ‘Delete VAT transactions with a date earlier than: ‘(enter date)’’. If you would like to do this, tick this box also and fill in the date. Under these tick boxes, enter the date of your next VAT Return in the format dd/mm/yyyy.
Once all information is filled in, select the ‘Produce VAT Return’ box.
Another pop out box will appear asking if you wish to produce your VAT Return now. Select ‘Yes’ (or ‘No’ if you wish to go back).
The screen will now open your VAT Return Online Submission.
Selecting ‘Next’ will take you to your company details, including Company Name and VAT Registration Number. These details will be used for the submission process so ensure they are correct.
Select ‘Next’ and the system will connect with HMRC. You now need to fill out your connection details into the Gov.uk page which has now appeared on the screen.
When you produce your VAT Return, Sage 200 will contact the government gateway to upload the return, so you must provide your User ID and password.
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