ProcessPreparation of VAT Returns

 

At the end of the month or each quarter, you file a VAT return with the tax office, and remit the VAT due.

Prerequisites

You have carried out the activities described in Closing for VAT.

Process

  1. You prepare a copy of the sales ledger and the purchase ledger.

    The ledgers show the invoices that have been paid and on which VAT is thus due. The ledgers are for your own reference in the event of a checkup by the tax office.

  2. You prepare the VAT return. This consists of two steps.

    1. You calculate the total amounts of VAT for each tax code.

    2. You print the VAT return.

      The system fills out the fields in the VAT return using the totals that you calculated in the first step.

    For information about preparing VAT returns for VAT withheld from foreign vendors, see Preparation of VAT Returns for VAT Withheld from Foreign Vendors.

  3. You file the VAT return with the tax office and remit the taxes.