Microsoft Dynamics GP: Information about the VAT 100 Return

With the digital requirements for filing VAT Taxes digitally in spring 2019, there has been more interest about the VAT 100 Return and how it should be setup.  I have included a Q&A format below to answer many of your questions and help get you started.  Although this blog should not be your only source of information on this topic, I hope this will be helpful so you can begin to use this module.

Can I install VAT 100 on a non-UK environment?
VAT 100 is included in the VAT Daybook dictionary and it is typically installed on an environment for the United Kingdom, but it can also be installed on many other environments such as U.S., Canada, etc. (Basically look to see if 'VAT Daybook' is listed as a module to install under Control Panel | Programs and Features for your Microsoft Dynamics GP installation, and if it's listed then you can install it.)

What are the VAT 100 reports?
VAT stands for "Value added tax".  VAT 100 is just a reporting tool to total up all your taxes and taxable amounts on sales/purchasing transactions using tax detail codes.  The tax detail codes are set up just like any other tax detail codes for any country (Tools | Setup | Company | Tax Details) and calculates on sales/purchasing documents just like any other tax. The VAT 100 reports pull the tax details from the Tax History table (TX30000)to calculate totals for Sales and Purchasing needed to report to their governing tax authority.

How do I enable the VAT 100 Return?
You must have VAT Daybook installed. Then go to the Company Setup Options window (under Microsoft Dynamics GP | Tools | Setup | Company | Company | Options) and mark the checkbox for 'Enable VAT 100' on a UK Install (or 'Enable VAT Return' on a U.S. Install). This option will allow you to generate the VAT 100 reports.

What do I need to do to be able to use the VAT 100 Return?

1. Have VAT Daybook installed.

2. Have 'Enable VAT 100' (or 'Enable VAT Return') option marked in the Company Setup Options.

3. Make sure all Debtors and Creditors have a COUNTRY CODE listed.  Use the scripts below to find Debtors and Creditors that are missing a country code and update their card as needed.  Tax information will not pull if debtors/creditors are missing a country code on their maintenance card.  

  select * from PM00200 where VENDSTTS <> 2 and CCode = ''

  select * from RM00101 where INACTIVE = 0 and CCode = ''

Where can I print the reports?
The VAT 100 Return can be printed under Microsoft Dynamics GP | Tools |Routines | Company | VAT Return.

Can I print both the VAT Daybook reports and the VAT 100 Return? 
No, you must choose which reports you want to use. 

What is the difference between the VAT 100 Return and VAT Daybook reports?
The fundamental difference between VAT 100 and VAT Daybook reports is that the VAT 100 reports pull all tax details, whereas the VAT daybook report allows the user to manually select which tax detail codes they want to print in specific columns on the report.
NOTE: The VAT 100 Return is most commonly used since it just pulls 'all' tax details.  (For more information on the VAT Daybook report setup, review KB 3139850.)

What reports are available to print?
You can print the following reports (and we recommend to print ALL of them and compare to each other):
• VAT Summary
• Sales/Purchasing Detail reports
• Sales/Purchasing Tax Detail reports
• Exception reports for Sales/Purchasing/General Ledger

Once you print the reports, can you delete them and regenerate them?
You can delete and regenerate the VAT 100 Return.

How do I verify that the VAT Return summary report is correct?

You are encouraged to print all the reports, and compare the totals on the detailed reports to the VAT Return summary report.  If the totals between the reports do not match, then you should investigate what the difference could be made up of. 

What is an 'exception' or Exception report?
Generally a transaction that was keyed late for a date range that you have already reported on is considered an exception.  (For example, let's say that you reported on the date range of May 1-31.  But then at a later time, a user posts a transaction dated May 28th.  So on your next return you will enter the date range of June 1-30, and the reports should automatically pick up the May 28th transaction as well to include in your totals (because it needs to be reported on too) and will list this May transaction on the Exception report since it is prior to the date range specified.)

How can I ensure that 100% of the purchase/sale amount is accounted for on a tax detail?
Go to the Company Setup Options window (under Microsoft Dynamics GP | Tools | Setup | Company | Company | Options) and mark the checkbox for 'Require Tax Details to Match the Pre-Tax Amount'. This requires the pre-tax amount to be fully distributed among the tax details of the transaction.  We also recommend to unmark the option for 'Allow Summary-Level Tax Edits' to be able to edit tax information on tax summary windows.

If there is no tax on the transaction, how do I get the document amount to still be included in the Total Sales/Purchasing amounts reported on the VAT 100 Return?
You would set up and assign a tax detail code for 0%, so the transaction will get written to the Tax History table (TX30000) and be included in the VAT 100 Return. The tax amount would be $0.00 on this record, but the taxable amount or document amount is included, so will be reported on.

How can I add taxes to Journal Entries in General Ledger?
Go to the Company Setup Options window (under Microsoft Dynamics GP | Tools | Setup | Company | Company | Options) and mark the checkbox for 'Calculate Taxes in General Ledger'.  Now when you key a General journal entry, you will have a button for Tax Entry at the bottom of the window. Click this button and mark if you want a debit or credit, enter the GL account, gross amount, tax detail code, tax amount and option reference.  Click Create and it will create the necessary GL distributions for the tax entry.   (NOTE:  Whether the tax code selected is set up for sales or purchasing, will drive if the amount is calculated in the sales or purchasing columns on the VAT reports.)

What if tax on my transactions in Cashbook Bank Management module are not updating the TX30000 table?
Go to the Company Setup Options window (under Microsoft Dynamics GP | Tools | Setup | Company | Company | Options) and mark the checkbox for 'Calculate Taxes in General Ledger'.  The Cashbook Bank Management module is considered a financial module, so you must mark this option to have it update the TX30000 table.

What is a reverse tax and how do I enable it?
A reverse tax is where you set up a tax detail code for a certain percentage, and then another tax detail code with the same percentage as a negative, so the tax is taken and then reversed out again.  To enable the ability to set up a negative tax, you must mark the checkbox for 'Enable Reverse Charge taxes' in the Company Setup options window.  This allows the tax amount and taxable amount to still be reported.  Consult your local taxing authority for further guidance on using reverse charge taxes.

What is an 'EU' transaction?
EU stands for 'European Union'. The VAT 100 Summary report includes separate boxes for tax amount totals and net amounts for sales/purchases if the debtor/creditor (ie. Customer/vendor) is part of the European Union.  To enable this mark the checkbox for 'Enable EU Transaction Tracking' in the Company Setup options window.  Now when keying a sales/purchasing transaction, the user will need to mark the checkbox for 'EU Transaction' when keying the sales/purchasing transaction. The ECTRX column is flagged in the TX30000 tax history table, so these transactions are calculated separately from other sales/purchasing totals on the summary report.  (EU Tracking is typically set up if you are using the Enhanced Intrastat module.)

Can you file the VAT 100 Return electronically?
The HMRC has released new VAT regulations to make tax digital (MTD) to be enforced in April 2019.   Be sure to install the February hot fix for Microsoft Dynamics GP 2016 and Microsoft Dynamics GP 2018 to get this new functionality for making tax digital for VAT filings. 

I hope the information above will be helpful to you as you explore the new functionality for filing VAT digitally. 

RESOURCES:

• Making tax digital documentation

• February hot fix for Microsoft Dynamics GP 2016/GP2018 for the MTD functionality

Thank you!

Cheryl Waswick

Sr. Technical Support Engineer

Microsoft Dynamics GP Support