Populating the boxes on the VAT return

The VAT return in Brightpearl is built by reading journals. Therefore it is important to know how each transaction affects the VAT return.

The VAT return boxes affected by transactions depends on the nominal code and the tax code used in the journal, as well as the journal type.

Below is a summary of what populates each box:

Box Description Journal types Account codes Tax codes
Box 1 Sales tax
  • SI
  • SC
  • BR
2200
  • PV2
  • R2
  • R5 
  • Any tax code in the VAT tax regime
Box 2 EC sales tax
  • PI
  • PC
  • BP
2201
  • T7
  • T8
Box 4 Purchase tax
  • PI
  • PC
  • BP
2201
  • PV2
  • R2
  • R5
  • Any tax code in the VAT tax regime
Box 6 Sales net
  • SI
  • SC
  • BR
4000 - 4999 (Sales)
  • R2
  • R5
  • Any tax code in the VAT tax regime
Box 7 Purchases net
  • PI
  • PC
  • BP
Any non-sales code
  • PV2
  • R2
  • R5
  • Any tax code in the VAT tax regime
Box 8 EC sales net
  • SI
  • SC
  • BR
4000 - 4999 (Sales)
  • T4
Box 9 EC purchases net
  • PI
  • PC
  • BP
Any non-sales code
  • T7
  • T8

Note: Transactions using tax code T9 are always excluded from the VAT return.

Note: The value in Box 5 is always positive.

What's included on the VAT return: standard scheme

The VAT return will include tax postings made using the following journal types, provided the tax code is in the VAT tax regime and is not T9:

  • SI, SC and BR

    Only the sales accounts (4000-4999) and the tax control accounts (2200 and 2201) will be included in the VAT return

  • PI, PC and BP

    Any non-sales accounts (0001 - 3999, 5000 - 9999) and the tax control accounts (2200 and 2201) will be included in the VAT return

  • JJ

    As long as the tax code is not T9 and is in the VAT tax regime, manual journals will affect the VAT return

Journal types SR and PP are always excluded from the VAT return. Transactions made using these journal types would not normally be assigned tax - they will always have a tax code of T9.

The following rules are applicable to rows in JJ journals which are assigned a tax code:

  • For a sales nominal code (4000 - 4999) the full amount is included in Box 6 of the VAT return
    • A credit will increase Box 6 and a debit will decrease Box 6 (Sales)
  • For the sales tax control account (2200) the full amount is included in Box 1 of the VAT return
    • A credit will increase Box 1 and a Debit will decrease box 1 (Sales tax)
  • For any nominal code which is not sales (i.e. 0001 - 3999 and 5000 - 9999), the full amount is included in Box 7.
    • A debit will increase Box 7 and a credit will decrease Box 7 (Purchases)
  • For the purchases tax control account (2201) the full amount is included in Box 4 of the VAT return
    • A debit will increase Box 4 and a credit will decrease Box 4 (Purchase tax)

A journal row value (depending on the journal type as stated above) will be included on the VAT return where the row has been assigned a tax code other than T9. In this image row 1 and 2 have a tax code of T20 and will therefore be shown in the relevant boxes of the VAT return:

Jnl_tax_codes

What's included on the VAT return: cash scheme

Because all information is recorded using the accruals basis, the tax information is stored on the invoice journal. This means that payments on account can't be included on the VAT return because there's no tax information available for those payments - only payments which are allocated to invoices.

The VAT return includes the following journal types:

  • SI and SC

    Only where a payment is allocated against the invoice. If the invoice is part paid, then a pro-rated amount will be shown on the VAT return.

    Only sales accounts (4000 - 4999) and tax control accounts (2200 and 2201) will be included in the VAT return.

  • PI and PC

    Only where a payment is allocated against the invoice. If the invoice is part paid, then a pro-rated amount will be shown on the VAT return.

    Any non-sales accounts (0001 - 3999, 5000 - 9999) and the tax control accounts (2200 and 2201) will be included in the VAT return.

  • BR

    Only postings to sales nominal codes will be entered into the VAT return.

  • BP

    Only postings to non-sales accounts (0001 - 3999, 5000 - 9999) will be included on the VAT return.

All SR and PP type journals will be excluded even if a tax code has been assigned to the journal row.

JJ journals will not be included on the cash VAT return.

Have more questions? Submit a request