VAT - Cash Receipts Basis

 

UNDER THE CASH RECEIPTS BASIS VAT ONLY BECOMES PAYABLE UPON RECEIPT OF CASH IN SETTLEMENT OF A SALE. 
 
IF A SALES INVOICE HAS BEEN MADE YOU NEED NOT PAY THE VAT TO THE REVENUE UNTIL YOU RECEIVE SETTLEMENT OF THE INVOICE, UPON SETTLEMENT THE VAT BECOMES PAYABLE ON THE PORTION OF THE SALE FOR WHICH SETTLEMENT HAS BEEN RECEIVED.
 
 
             Total VAT portion of Sales Invoices for which their are receipts in the period
 
Less      Total VAT on Purchases
 
 
Equals   VAT Payable/(Reclaimable) from the Revenue
 
 
 

REPORTS > VAT REPORTS > NORMAL VAT REPORTS

 
 
Date From                                                              
 
Enter the first day of the VAT period which you are preparing
 
 
Date To                                                                   
 
Enter the last day of the VAT period which you are preparing
 
 
Prepare                                                                  
 
The report is prepared
 
 
Close the VAT Summary                          
 
 
YOU MUST NOW CLICK ON "CASH RECEIPTS BASIS".
 

A VAT ON DEBTORS REPORT WILL AUTOMATICALLY GENERATE AT THE RELEVANT DATE. THIS REPORT TOTALS THE VAT FIGURE WHICH REMAINS OUTSTANDING TO BE RECEIVED.

IT IS ADVISABLE TO PRINT THIS REPORT AND MAINTAIN AS PART OF THE WORKING PAPER FOR THE VAT RETURN.

 
Close the "VAT on Debtors" Report                                                                   
 
You will automatically be returned to the initial normal VAT report
 
 
Prepare                                                                  
 
Click "Prepare" on the Normal VAT report, the VAT on Sales figures will now automatically be adjusted to account for VAT on receipts ONLY.
 
 
Print                                                                        
 
Print the VAT Summary and the main VAT report and maintain with the "Vat on Debtors" report to back up the figures returned to Revenue.
 
 
 
Tagging                                                                  
 

Once satisfied that all the VAT reports are correct and has captured all transactions tick the box to tag the transactions.  This is a method of marking the invoices which have now been included in a return to the Revenue and so excludes such transactions from future returns. The tagging process prevents the amendment of any tagged transactions.

N.B. Once the report has been tagged the tagging process cannot be reversed, it is advisable to take a backup prior to tagging in the event that you may need to restore the company accounts to the point before tagging.

Restoring a back taken prior to the tagging is the only method of “reversing” this process however any data entered between the date of the back up and the current date will be lost if a back up is restored.

 

UPON PREPARING A VAT RETURN ALL SUPPORTING REPORTS USED SHOULD BE PRINTED AT THE TIME OF THE RETURN PREPARATION AND MAINTAINED FOR FUTURE REFERENCE. 

FOR ANY ISSUES OR SUBSEQUENT REVENUE VAT AUDIT WHICH MAY ARISE IN RELATION TO THE RETURN IT IS IMPORTANT THAT YOU HAVE A PAPER TRAIL TO REFER TO.  THIS WILL ALSO SIMPLIFY THE FINANCIAL YEAR END RECONCILIATION OF VAT FOR THE ACCOUNTANT.

Need help? Support is available at 01 8352074 or support@thesaurus.ie.

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