Calculate Your VAT Returns

Zumzum Financials Knowledge Base

    Prepare Your VAT Return

    Calculating the VAT Return doesn’t affect your transactions in Zumzum Financials, no postings are made to your nominal codes or the general ledger. This means that you can calculate your VAT Return as many times as necessary. However, when you mark your ledger records as being reconciled, this prevents them from being automatically included in a future VAT return calculated in Zumzum Financials.

    1. Navigate to the Transactions tab.
    2. Click on the VAT Return icon.
    3. Click on the New VAT Return button.
    4. Fill out the Date From transactions before this date will not be included in the VAT return.
    5. Enter the Date To transactions after this date will not be included in the VAT return.
    6. Click Calculate and Zumzum Financials will complete your 9 boxes.
    7. If there were unreconciled past transactions, the system will display a message informing you of this. To include those transactions in the calculations, just check the “Include Late Claim” checkbox and click on the Calculate button again.
    8. To begin the process of reconciling your VAT return click on the  Reconcile button.
    9. The system will ask for confirmation, click on Reconcile again.
    10. The system will automatically flag the transactions included in this VAT Return as “VAT Reconciled”, so they will not be included in the following periods.

    A batch process will commence to update all your ledger entries linked to this VAT return and mark those transactions as VAT reconciled.  The related ledger transactions will be viewable in the related list for Ledger Transactions.

    Once the VAT reconciliation process has completed, you will receive and email to confirm the process has completed.

    VAT Transfer Process

    This option transfers the values from the sales and purchase tax control accounts into your VAT liability account.  A journal will be created on the date of the transfer from your Purchase Tax Control Account and Sales Tax Control Accounts to your VAT Liability Control account.

    Follow these steps:

    1. Navigate to the Transactions tab and Select VAT Transfer.
    2. Confirm the VAT Liability account the balance will be transferred to.
    3. Set the Date you wish the journal to be entered into Zumzum Financials.
    4. Click Save to confirm the system should create the journal entry.

    Review your Trial Balance Report to confirm the values have transferred correctly.

    Submit MTD For VAT Compliant VAT Return To HMRC.

    Please ensure you have configured your Lightning Record Pages to show the components referred to below.  If you are on Salesforce classic, then please follow the instructions to correctly add the necessary Visualforce components to your classic page layouts.

    Once you have reconciled your VAT return, follow these steps to submit your VAT return to HMRC via your MTD for VAT connection:

    1.  Ensure you have authorised  Zumzum Financials to connect to HMRC.
    2.  Navigate to the draft VAT return you wish to submit to HMRC.
    3.  Review and confirm your Company and VAT Obligations are correct.
    4.  Find the Submit MTD for VAT component on the page layout
    5.  Select Submit to HMRC button to send your VAT return.
    6.  Once submitted, you will receive a confirmation message.
    7.  In the related list VAT Submission Results you will see the confirmation message from HMRC.
    8.  Your linked VAT Obligation record will set to Fulfilled to confirm it has been received by HMRC.
    9.  Your VAT return status will be updated to HMRC Filed.


    in VAT ReturnVAT Return Tags: tax returnsTransactionsVAT Returns