When preparing a VAT Return, you can use the VAT Report to review the transactions and figures included in the return.

If an invoice appears to be missing from the VAT Report, or the figures in the report do not match the VAT Return, work through the checks below.

If a specific invoice is missing from the VAT Report or shows a different figure from the VAT Return, check the following:

Check the VAT basis

First, check the VAT basis configured in VAT Settings.

If the client is using Cash VAT basis, an invoice is included in the relevant VAT period based on when it was paid, rather than when the invoice was raised.

For example, an invoice dated in March but paid in April would be included in the VAT period containing the April payment date.

If the client is using Invoice VAT basis, the invoice is generally included based on the invoice date.

Check the invoice and payment dates

Check the invoice date and, where applicable, the allocation or payment date.

This is particularly important for invoices that fall across VAT periods.

An invoice may appear in a different VAT period from the one expected if the payment or allocation was made in a subsequent period.

Check the VAT rate and country settings

Check the VAT rate applied to the invoice and confirm that the country/place-of-supply information is correct.

This is particularly important for invoices involving EU or overseas customers, where the country setting can affect how the transaction is treated for VAT reporting.

An incorrect country or place-of-supply setting may result in an invoice being excluded from the expected VAT report or being reported differently.

Check whether the issue affects one invoice or multiple invoices

If the VAT settings, invoice dates, payment dates and VAT treatment are correct, check whether the issue is isolated to a specific invoice or affects multiple transactions.

If only specific invoices are affected, make a note of their invoice reference numbers.