Producing and reviewing the VAT return

What is this page about: How to generate a VAT return for review, drill from a box into the postings behind it, and catch a transaction that landed in the wrong box because it used the wrong tax code. It covers viewing a return without filing it, the drill-down, and how to correct a posted journal entry with the wrong tax code.

# On this page

• Generate a return for review
• Drill into a box
• Spot a mis-coded transaction
• Correct a mis-coded posted entry
• Best practices
• Related articles

# Generate a return for review

Viewing a VAT return and filing it are separate actions. The report appears as soon as you set an entity and a date range.

1. Go to Planning & Reports > Reports.
2. Open the VAT system report for the country.
3. Set the entity filter to a single entity.
4. Set the date range to the period you want to review.

The box or section table appears once both filters are set.

# Drill into a box

Every box or section amount on the VAT report is clickable and opens a drill-down of the postings behind it. It's the same drill-down used across Light's system reports, including the income statement.

1. Click a value on the report.
2. The drill-down opens with all its columns showing: ID, Document, Transaction type, Description, Posting date, Valuation date, Account, Type, Tax code, Balance, Tax tag label, Account label, Account type, Amount, Business partner, Entity amount, Group amount and Created at. Document shows the document number and Type shows the document type.
3. Use the column toggler to hide columns you don't need.
4. Use the Transaction currency or Type filters to narrow the list.
5. Add up the Amount column and compare it with the value you clicked. They match, since the value is the sum of the lines shown.

# Spot a mis-coded transaction

Each posting lands in a box because of the tax code (and its tax tags) on that line. A line with the wrong code lands in the wrong box, or in no box at all.

• Drill into the box and check the Tax code column on each line against what the transaction should have used.
• To see the tax on a journal entry line, look in its Debit amount or Credit amount cell. Lines with a tax code and an amount show a smaller tax field there, holding just the tax portion.
• The Net tax / Gross tax toggle at the top right of the journal entry's Details card changes how amounts are displayed. It doesn't change the tax code on the line, so it's a viewing aid while you check.

# Correct a mis-coded posted entry

To correct a posted single journal entry, use Modify. A posted single journal entry offers two actions, Modify and Void.

1. Open the posted journal entry.
2. Open the three-dot menu and choose Modify.
3. Confirm the dialog. Light reverses the posted entry and returns the same entry to Draft, keeping its number.
4. Change the Tax code on the affected line.
5. Post the entry again.

Before you post again, check that the posting date falls in an open period. If the period is closed, reopen it first or post with a date in the current open period.

Intercompany journal entries offer Void only. To correct one, void it and create a new entry.

# Best practices

• Drill into every box before filing, not just the ones with unexpected totals. A mis-coded line can just as easily be missing from the box it belongs in.
• Check the Tax code column in the drill-down, not only the totals.
• Use Modify for corrections. It leaves a clear record of what was reversed and what replaced it.
• Fix mis-coded entries before the period closes. After that, correcting them needs the period reopened.

# Related articles

• From tax codes to a VAT return
• Filing, evidence and corrections
• The VAT clearing journal
• Tax and VAT Configuration

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