Overview:

Zumzum Financials offers a comprehensive guide for calculating and submitting VAT Returns. The process involves navigating to the VAT Return section, entering relevant transaction dates, and calculating VAT. Users can reconcile transactions to ensure they are not included in future returns. The VAT Transfer Process allows for the transfer of tax control account values into the VAT liability account. For Making Tax Digital (MTD) compliance, users can submit VAT returns to HMRC directly through the platform, ensuring all necessary authorizations and configurations are in place.

Prepare Your VAT Returns

Calculating the VAT Return doesn’t affect your transactions in Zumzum Financials, no postings are made to your nominal codes or the general ledger. This means that you can calculate your VAT Return as many times as necessary. However, when you mark your ledger records as being reconciled, this prevents them from being automatically included in a future VAT return calculated in Zumzum Financials.

1. Navigate to the Transactions tab.
2. Click on the VAT Return icon.
3. Click on the New VAT Return button.
4. To set the VAT period;
   • For MTD For VAT
     • lookup the Obligation record for your period
   • For non MTD for VAT
     • Fill out the Date From transactions before this date will not be included in the VAT return.
     • Enter the Date To transactions after this date will not be included in the VAT return.
5. Click Calculate and Zumzum Financials will complete your 9 boxes.
6. If there were unreconciled past transactions, the system will display a message informing you of this. To include those transactions in the calculations
   • check the “Include Late Claim” checkbox and click on the Calculate button again.
7. Click Calculate and Zumzum Financials will complete your 9 boxes.
8. Click Save to store your VAT Return

Reconcile VAT Return

1. To begin the process of reconciling your VAT return click on the VAT Return Name to view the record
2. Click Edit to view the VAT return buttons
3. After reviewing your VAT Return, clock the Reconcile button.
4. You will be presented with a message for confirmation:

   • Warning:

     Your VAT Return will be recalculated and then reconciled. Do you wish to proceed (you can not undo once you have done) ?
     Please select Reconcile to continue to update all ledger transactions.

5. Click on Reconcile again to proceed with reconciliation
6. See the Success message to know the batch reconciliation process has commenced

   • Success

     The VAT return has been recalculated successfully
     Reconcile is in progress. You will receive a notification email once the process is complete.

7. The system will automatically flag the transactions included in this VAT Return as “VAT Reconciled”, so they will not be included in the following periods.
   • A batch process will commence to update all your ledger entries linked to this VAT return and mark those transactions as VAT reconciled.  The related ledger transactions will be viewable in the related list for Ledger Transactions.
8. You will recieve an email confirmation that your VAT Return has been reconciled so return to the VAT Return.
9. Your VAT Return status will be set as Reconciled.

A batch process will commence to update all your ledger entries linked to this VAT return and mark those transactions as VAT reconciled.  The related ledger transactions will be viewable in the related list for Ledger Transactions.

Submit MTD For VAT Compliant VAT Return To HMRC

Please ensure you have configured your Lightning Record Pages to show the components referred to below.  If you are on Salesforce classic, then please follow the instructions to correctly add the necessary Visualforce components to your classic page layouts.

Once you have reconciled your VAT return, follow these steps to submit your VAT return to HMRC via your MTD for VAT connection:

1.  Ensure you have authorised  Zumzum Financials to connect to HMRC.
2.  Navigate to the draft VAT return you wish to submit to HMRC.
3.  Review and confirm your Company and VAT Obligations are correct.
4.  Find the Submit MTD for VAT component on the page layout
5.  Select Submit to HMRC button to send your VAT return.
6.  Once submitted, you will receive a confirmation message.
7.  In the related list VAT Submission Results you will see the confirmation message from HMRC.
8.  Your linked VAT Obligation record will set to Fulfilled to confirm it has been received by HMRC.
9.  Your VAT return status will be updated to HMRC Filed.