Setting Up VAT Return Reporting

If you have the permissions to do so, you can follow the steps described in this section to set up and configure the VAT Return Reporting functionality after installing the Tax Reporting package.

You must be assigned a System Administrator profile and the Tax Reporting permission set to perform the steps. Access the related help page and complete the tasks described.

Single-Company Mode

You must be in single-company mode.

Configuring Tax Codes

You must configure the tax codes required to generate a VAT Return report. The boxes that you select in the VAT Net Box and VAT Tax Box fields are used to report the net and tax value respectively of the transaction line items of type "Tax" associated with the tax code. For each field, you must select the boxes accordingly. For more information about the setup, refer to the HM Revenue & Customs website.

Set Up Tax Code Page Layout

You can add the VAT Net Box, and VAT Tax Box fields to the Accounting Tax Code object using the Feature Console.

For more information, see Enabling Tax Box Mappings.

Set Up Custom Reports and Email Template

If you want to use the standard reports or email template that are installed with the VAT package, you are ready to go.

However, if you want to use a custom report or email template with a different name, your administrator must create a new VAT Report Settings custom setting.

The default names are:

  • VATReturnBreakdownReport
  • ECSalesListReport
  • VATReportCompletedConfirmation

To specify a custom report or email template:

  1. Click Your Name | Setup | Develop | Custom Settings.
  2. Click Manage next to the VAT Report Settings custom setting.
  3. Click New at org level.
  4. [Optional] Enter one or both existing report names.
  5. [Optional] Enter the name of an existing custom email template.
  6. Click Save.

Share VAT Reports Folder

Share the VAT Reports folder with the relevant users. For more information, see the Salesforce Help.

Set Up Making Tax Digital

Prerequisites

Ensure you are up-to-date with your VAT return filings to HMRC.

Existing VAT Reporting Customers

Note: Before submitting to HMRC, you must ensure that your past VAT transactions data is reconciled. To do this, you must generate and reconcile your VAT return reports up to and including the last VAT return submitted via the HMRC Gateway. For more information, see Generating a VAT Return Report and Reconciling a VAT Return Report.

Existing Accounting Customers New to VAT Reporting

  1. Before changing the VAT report status to "Reconciled", generate VAT reports for the appropriate periods and reconcile them to their original returns. This ensures that you only include transactions relevant to the period of the first digital return. For more information, see Managing VAT Reporting.
  2. Select the checkbox "I want to reconcile this report without submitting to HMRC".
  3. Click Reconcile.

New Accounting Customers

As a new Accounting customer you must ensure that any open transactions needed in your first VAT return after going live are migrated to Accounting.

This ensures that the transactions are included in the first return created from VAT Reporting Spring 2021.

Note: This must be coordinated with your implementation consultant.