There may be times when you need to adjust the VAT amount on your VAT Return by a specific amount. A Billing with a Billing Line that has a VAT only Tax Group can be created to make an adjustment to your VAT Return. The Tax Rate on a VAT only Tax Group will be 0%.
Do you want to:
- Create & Post a Billing with a Billing Line that has a VAT only Tax Group
- View the Billing in VAT Reporting
Create & Post a Billing with a Billing Line that has a VAT only Tax Group
- From Accounting Home, under Cash In select Billings (Customer Invoices).
- From the list view, click New to create a new Billing. The New Billing dialog box displays.
- Complete the required fields, which display with a red asterisk.
- Posting Status
- Billing Date
- (Optional) Complete additional fields.
- Click Save. The Billing record displays.
- Scroll down the page to the Billing Lines related list. To add Billing Lines, click Mass Add/Edit Rows.
- Click Add New Line.
- (Optional) Click the Lookup icon to search for and select a Product for the line.
- Enter the Quantity.
- Enter the Unit Price.
- Enter a Revenue GL Account. Otherwise, click the Lookup icon to search for and select a Revenue GL Account.
- Click the Lookup icon to search for and select a Tax Group for the line.
Tip: To view all of the available Sales Tax Groups for your country, enter the first three letters of the Sales Tax Group in the Lookup search textbox. For example, for Great Britain, enter “GBS” in the Lookup search textbox and click Go. Otherwise, you can view all of the available Tax Groups from Accounting Home, under Master Data Setup | Tax Groups.
- (Optional) Add additional lines.
- At this point, you can select one of the following: Save & Complete, Save & Post, etc.
The sample screen below shows the posted record with the Tax Rate for the VAT only Billing Line as 0%.
Note: Posted records can be viewed in Avalara VAT Reporting.
View the Billing in VAT Reporting
- To view the Billing in Avalara, log into your VAT Reporting Account.
- From the Transactions menu, select Processed Documents.
- (Optional) Select/enter any or all of the following, and then click Apply.
- Processed After
- Processed Before
- Filename Contains
- Only Show Manual Documents (Only applicable if manual documents were created in Avalara VAT Reporting.)
- Under File name, click the hyperlink for the Billing that you want to view.
Note: In addition to the Billing number, each filename includes a date and time stamp. This information is included so that each Billing/Invoice Number can be uniquely identified.
The Document details will display with an error.
- Click the X in the upper-right corner of the Document details dialog box to close it.
- Click the Errors & Warnings menu.
Note: The error for the VAT Only Tax Group/Tax Code will display as "The applied VAT amount in the data doesn't match the VAT Rate of the VAT code."
- Select the Error checkbox.
- Click the Apply to Selected drop-down list and select Disable VAT rate check. This will clear the error and allow the document to process as normal.
- Access the Transactions menu and select Processed Documents.
- Under File name, click the hyperlink for the Billing that you want to view (the one that previously displayed with the error). The error message has cleared and a click-through link is available.
- Click the Invoice Number hyperlink.
- Click the Invoice Number hyperlink again to drill-down for viewing line item details. Then, scroll down the page to view each line, as necessary.
- Scroll down the page to the Invoice Lines section. Only the VAT amount is included on the line.
- Scroll down the page to display the Additional Document Data. The VAT Only amount is added to the appropriate box on the VAT Return.
- This is a new article with the Iris release.