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Generating VAT Returns

Shinjinee Sarkar
  • Updated

You can generate period-wise VAT returns which give the following information:

  • VAT on sales and purchases
  • VAT payable or claimable
  • Intra-EU goods and service transaction values
  • Postponed VAT Accounting values
 
To know about Postponed VAT Accounting, click here.

To generate the VAT returns, complete the following steps.

1. Log in to BrightBooks and select the required business.

2. On the Customers page, from the left panel, click General Ledger > VAT Returns.

3. The VAT Return page appears. Click New.

4. The New VAT Return window appears. Specify the period until which you want to generate the VAT return and click OK.

5. The Confirmation Message window appears. Read the message carefully and click Proceed, if you are happy with the outcome.

  
If you are generating your first VAT return of the tax year and there are pending VAT returns from the previous tax year as well, then VAT returns includes previous data.
 To avoid the previous tax year data being included, first separately generate the VAT returns of that period.

6. The VAT returns and other values are generated, as shown below.

  
  • Since the United Kingdom is no longer a EU member state from 01 January, 2021, trade values with the United Kingdom, if any, are excluded in the E1, E2, ES1 and
     ES2 boxes.
  • Northern Ireland continues to be treated a EU member state and all trade values, if any, are included in the E1, E2, ES1 and ES2 boxes.

7. Now, you have the following options on the VAT Return window:

      • To save the data and have it displayed as a period-wise VAT return record on the VAT Return page, click Save. If more transactions generate more VAT later, you can remove this record and generate the updated VAT returns later.
      • To view the VAT details in the form of the VAT Details report, click Print.
      • If you are satisfied no more VAT returns will be added to the one you generated, you may tick Closed on the VAT Return window. This means that you are no longer allowed to update the VAT returns for the period you generated. We advise you to use this option carefully.

Additional Options

To remove a VAT returns record, save the VAT returns first and then, on the VAT Return page, click the  'drop-down' icon and then click Delete.