Overview:

After completing the VAT Return, the reconciled values from the Sales Tax Control Account and Purchase Tax Control Account should be transferred to the VAT Liability nominal code to accurately reflect the amount due for payment or reclaim from HMRC. Once the VAT is paid or received, a bank payment or receipt can be posted to clear the VAT Liability nominal code. To automate this process, first complete your VAT return and note the values from boxes 1 and 4. Then, navigate to the Transaction tab, select the VAT Transfer icon, and enter the date of the transfer. Input the amounts from VAT Return boxes 1 and 4 into the respective fields for Sales and Purchases, and click Save. This action will automatically generate the necessary journal and ledger entries, streamlining your VAT accounting. For detailed guidance on calculating your VAT return in Zumzum Financials, refer to additional resources.

After completing the VAT Return, the reconciled values from the Sales Tax Control Account and Purchase Tax Control Account should be transferred to the VAT Liability nominal code to show the value due to be paid or reclaimed from HMRC.

On paying or receiving the VAT, a bank payment or receipt can then be posted to clear the VAT Liability nominal code.

This may be done manually, however, here is how to post the journals automatically:

1. Complete your VAT return and note the values from box 1 and box 4
2. Navigate to the Transaction tab.
3. Select the VAT Transfer icon.
4. Enter the date of the transfer in the Date to field.
5. Enter the amount from the VAT return box 1 in the Sales field.
6. Enter the amount from the VAT return box 2 in the Purchases field.
7. Click Save.

An automated journal and ledger entries are created for you.

Learn more about calculating your VAT return in Zumzum Financials.