A VAT summary must be drawn up each month when using ProCountor. The summary calculates each month's VAT debt and compiles the VAT information required for periodic tax returns. The VAT summary is drawn up under Notifications > VAT summary.
Note! VAT summaries and periodic tax returns may be drawn up beginning from target month 1/2010. For 2009, VAT debt is calculated by generating a VAT monitoring report.
In Procountor, the VAT summary is used to calculate and enter monthly VAT debt and to compile the VAT information reported on the periodic tax return. Separate VAT summaries must be drawn up for each month even if an extended (3 or 12 months) tax return period is used.
Generation of the VAT summary is initiated by clicking on the Create VAT summary button. After you have clicked on the button, the program will prompt you to enter the target year and month for the summary. The program automatically offers the earliest month for which VAT receipts exist, but for which no VAT summary has been created or whose VAT information has changed since the summary’s creation. The selection is approved by clicking on the Continue button, after which Procountor will generate the VAT summary and the related accounting.
The generated VAT summary includes the information of all receipts dated to the target month and including VAT, which were business transactions at the time of the summary’s generation. Unfinished and invalidated receipts will not be included, nor will verified but not approved purchase invoices. If the target month’s information change after the generation of the VAT summary (e.g. due to the entering of a new invoice or the approval of an unfinished one), a new VAT summary must be created for the period.
The Get modified receipts button displays a list of receipts modified after the creation of the selected VAT summary and new receipts dated to the summary’s period.
VAT summary accounting
The program automatically generates an accounting page for the VAT summary and dates the page to the last day of the target month. For example, the VAT summary for March 2012 will thus be dated 31 March 2012. VAT summary accounting will enter the VAT debt accrued from the month’s receipts on ledger account "2930 VAT liability".
VAT summary accounting entries are single sided, and all receipts related to the summary constitute the reversing entry. Once the VAT summary has been generated, the result of accounting reports and the balance sheet should balance until the end of the target month. The results on the income statement and balance sheet will not balance until the VAT summary has been saved and an entry on account “2930 VAT liability” has been created on its accounting page.
The summary’s sums or account cannot be changed on the VAT summary accounting page. The only data that may be modified are notes, date/entry period and transactions description.
The VAT-bearing transactions related to each accounting entry in the VAT summary can be retrieved by clicking on the Search information button. This facilitates the monitoring of VAT debt generation and the entry chain.
The Search all transactions button displays a summary report of the entries that constitute the figures in the summary.
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Reporting VAT information to the tax authorities
The VAT information compiled in the VAT summary are reported to the tax authorities on the periodic tax return. Read more on the creation and sending of tax return for self-assessed taxes.
Generating a VAT summary before the end of the month
A VAT summary can also be generated during the target month if you wish to calculate the current VAT debt for purposes such as reviewing the balance sheet. The summary can then be invalidated or updated later with new figures, as long as the information has not been reported to the tax authorities on a periodic tax return.
Generating a new VAT summary for the same month
If new receipts including VAT are entered for a month or changes are made to entered receipts after the VAT summary’s generation, a new VAT summary must be generated for the month. The summary is generated in the normal manner, using the Create VAT summary button.
Procountor generates the new VAT summary in one of the following ways, depending on the status of the existing VAT summary:
- If an invalidated VAT summary exists for the month in question, a new summary will be generated in the normal manner
- If a finished but unreported summary exists for the month in question, this summary will be updated with the changed information
- If a summary reported earlier on a periodic tax return exists for the month in question, a new summary will be generated. The program first zeroes the previous VAT summary’s accounting on the new summary’s accounting page and then recalculates the VAT debt (if the old summary’s accounting was not zeroed, the month’s VAT debt would be calculated twice).