There are two different VAT Analysis reports – both will be examined individually in detail. The first of the two VAT Analysis reports relates to the Vehicles section of the system and is discussed below
VAT Analysis Reporting – Vehicles Module
Within the Vehicles Module, the VAT Analysis report is found within Vehicles Reporting Accounts VAT Analysis.
This report gives a detailed breakdown of the VAT relating to the purchase and sales of vehicle stocks, displaying Input and Output VAT as well as Special Scheme VAT charged on the profit margin of sold non VAT qualifying vehicles.
To generate the report, complete the required reporting criteria – including whether to look at new or used vehicles, a specific stock number if desired and a system period. Click ‘Create Report’.
The report displays as per the example below.
The screen is effectively split into three sections. The left hand side of the stock number column deals with Input VAT while the right hand side of the stock number column deals with Output VAT on sales; the middle column is automatically completed with the stock number of the vehicle. As with most reports from the Vehicle module, double clicking on any of the lines that appear will open up the stock card of the relevant vehicle.
As this report is driven by an individual system period, there will be vehicles on which only one half of the input/output VAT equation is applicable.
In the example above, both of the vehicles fit these criteria. In the case of the vehicle relating to stock number N3205, the vehicle has been purchased in the period being reported upon – as a result the VAT Input figures are visible. However, as the vehicle has not yet been sold the Output figures are zero. N3212 is the opposite scenario – the vehicle was purchased in a previous period and thus does not display any Input VAT in the period being reported on. However, it has been sold in this period and so the Output VAT figures are populated.
VAT Analysis Reporting – Accounts Module
The VAT Analysis report is held within Accounts Nominal Ledger Reporting VAT Analysis.
This report gives a detailed breakdown of all VAT transactions that have taken place on the system within a specified accounting period. Unlike the report available from the vehicles module, this report will look at all of the areas of the system where input and output VAT must be accounted for – including vehicles, parts, workshop, sales ledger and purchase ledger transactions and any sundry postings made to VAT output via the cash receipt routine within the cashbook.
Before running the report, complete the reporting criteria. The system period specified at this point will dictate which accounting period is reported. The VAT No field is not currently in use. Select a Quarterly Report to give a summary of VAT transactions over the most recent 3 months, while summary only gives totals for the particular period that we wish to display. If we leave both of these boxes blank, the report displays as below when clicking on the ‘Display’ button.
The report can be printed or exported by clicking on the relevant buttons on the bottom right hand side of the screen. Click on ‘Export’ to download the file into Excel in a format that has been designed with input from HMRC.
The report is broken into two main areas – Output VAT on Sales appears at the top of the report, whilst Input VAT on Purchases appears at the bottom. Outputs and Inputs are also reported on separately, by Tax Category.
The column headings across the top of the report detail:
Source - System module that has generated the posting.
Code - Particular S/L, P/L or N/L account.
Name - Name of the account.
Stock No - Stock number of vehicle that posting relates to, if applicable.
Reference - Invoice number that has driven the posting.
Date - Date of the invoice that has driven the posting.
Goods - Pre-VAT goods cost.
VAT - VAT element of the purchase or sale.
Total - Goods value added to the VAT element, giving the total due.
Negative values in the Total column are indicated by the “Cr” symbol appearing next to them.
Scrolling the report down will reveal other areas – a report of Output VAT relating to the other tax categories set up earlier and a report of Input VAT on purchases made within the system period specified.
The analysis of Capital Goods is also available on the VAT Analysis report which will show all VAT transactions for Fixed Assets. This includes VAT for purchases made via the Purchase Ledger, Output VAT for Sales completed via the Sales Ledger and also Inputs or Outputs for transactions created via the Nominal Ledger for Fixed Asset nominal codes where a VAT posting is included.
The VAT report will only display as shown below where the dealership utilises the Fixed Assets module.
At the bottom of each section, the system gives a sub total line for the Goods, VAT and Total columns – these sub totals are later used to populate the Summary box that appears at the bottom of the report.
VAT Analysis - Summary and Quarterly Reporting
As per a standard VAT Liability equation, the system will deduct Input VAT from Output VAT to give a Nett VAT figure.
It will also display total sales and purchases, and totals according to the tax categories used.
If the ‘Summary Only’ box is ticked before the ‘Display’ button is clicked, the Summary as it appears above is the only part of the report that will be displayed.
If the ‘Quarterly Report’ box is ticked before the ‘Display’ button is clicked, the report will display as below:If the ‘Summary Only’ box is ticked before the ‘Display’ button is clicked, the Summary as it appears above is the only part of the report that will be displayed.
This version of the report gives a summary of VAT transactions across a rolling 3-month quarter, as well as a total summary of the VAT transactions taking place in the quarter as a whole.
Posting the Quarterly VAT Payment
Once the figure due to be paid has been ascertained from the VAT Analysis Report, any payment due to HMRC should be posted using a cashbook sundry payment to the VAT Control nominal. Journals to move balances from the VAT Input, Output or Special Scheme nominal codes are not recommended as these journals will be included in the VAT Analysis Report for the period in which the journals were posted which will make historic VAT reporting problematic.
VAT Analysis - Trading Details Report
*Only for customers who have the TAX report option enabled within Company Structure and enterprise level (VAT reporting by tax type) *
When looking at the VAT Analysis report within the Nominal Ledger you will now have a different layout at the top. You will have a Report type drop down, which allows you to switch between the original VAT report and the Return of Trading Details report. When this is selected you then only have the option to select a period. Once the period is selected, the report will generate data from 12 months prior to the selected period. (This Includes the period selected e.g. Period 01/2017 is selected, information shown will be for period 02/2016-01/2017)
The report is broken down into Outputs and Inputs where each tax type is listed with the percentage setup next to it. Outputs is split between Internal and everything else, Inputs is split between EU, Resale, Non-Resale and Internal. The turnover figure shows the balance of postings related to that Tax type and the VAT figure it the actual amount of VAT for that type.
Resale and Non-Resale are split out as the option to mark postings related to VAT as either one, is in the Purchase Ledger post invoice screen as per a previous update. EU figures are included in the Resale and Non-resale postings so when reconciling the VAT figure this may cause figures to calculate incorrectly
