A list of VAT bills whose transaction type does not match the document they came from. Every VAT register line has a transaction type, and that type decides which column of the VAT return the bill lands in. A sales invoice should have a sales type and a purchase bill a purchase type. When a sales bill has a purchase type, its VAT is claimed as credit instead of being declared as output VAT, and the month is wrong by twice the VAT. This report finds those bills.
When to use it
- Before you file a VAT return, to check that no bill is sitting on the wrong side.
- When a month's output VAT or input credit looks too low or too high for the sales and purchases you know about.
- After you import or hand-key VAT register lines.
Before you start
- You need view access to the Audit reports.
Where to find it
Reports > Audit > VAT Transaction Type Issues.
The fields on this screen
| Filter (on screen) | What it does |
|---|---|
| Issue | Shows one kind of problem only. Leave it blank to list every kind. |
The report looks at every year, not only the fiscal year selected at the top of the screen.
Running the report
- Open Reports > Audit > VAT Transaction Type Issues.
- Leave Issue blank to see everything, or pick one kind.
- Double-click a row to open that voucher and correct its VAT line.
You can also correct the type on the VAT Register screen. The Filed as value is the T.TYPE column there, and you can change it on the row itself.
How it works
Each row names one problem and how serious it is:
- Filed on the opposite side to its document (Error): the document is a sale and the bill is filed as a purchase, or the other way round. The VAT is in the wrong column of the return, so the month is out by twice the VAT figure: once for the column it is missing from, and once for the column it should not be in.
- Filed under a type the return has no column for (Error): the type is filled in, but the return has no column that matches it, so the bill's VAT reaches no total at all. The line looks classified on screen, which is why this one is easy to miss.
The columns side by side are the evidence: Document and Document side, then Filed as and Filed side. When the two sides differ, that row is the problem.
Tips and common mistakes
- A VAT line with no transaction type is not listed here. VAT Register Issues lists those.
- A journal, a receipt or a payment has no side of its own, so its VAT lines are never judged here. The person who filed it chooses the type.
- The party's name is not evidence of the side. A party called "Suppliers" can be a customer. What decides it is the document and the ledger it posts to.
- This report does not correct anything. Fix the VAT line's transaction type, and it drops off the list.
- If the return for that month has already been filed with the tax office, speak to your accountant before you change the type. The correction changes two columns of a filed return.
Related guides
- VAT Register Issues, VAT Filing Period Issues, VAT Return, VAT Register.