We are looking to set up Group VAT return in VAT, There will be four companies, could you please someone please advise how we do this, we are using BTC software to submit the MTD.
For example company 100, will be the main company which will be submitting the VAT return on behalf of the all group, how do we add the other companies to the VAT return.
If any one has any instruction or process notes on setting up VAT returns for group would be greatly appreciated.
I look forward in hearing from you.
Thanking you in advance.
Thanks
Swati
Best answer by Ieva Rituma
Here are the steps you should follow:
Ensure that all the tax codes from the group entities also exist in the company from which the VAT return will be generated from
Set up the Tax Template Field control window for all the group companies
Go to the Tax Report for MTD in the reporting company and add all companies in the “Companies” tab
When you process the tax clearance process, ensure that the posting control is set up correctly for the group entities (this could be different for the reporting company).
The tax clearance process has to be done from each entity, not just from the reporting one.
Ensure that all the tax codes from the group entities also exist in the company from which the VAT return will be generated from
Set up the Tax Template Field control window for all the group companies
Go to the Tax Report for MTD in the reporting company and add all companies in the “Companies” tab
When you process the tax clearance process, ensure that the posting control is set up correctly for the group entities (this could be different for the reporting company).
The tax clearance process has to be done from each entity, not just from the reporting one.
After the tax proposal has been completed and is in status “Reported/Valid”, the Tax Clearance process clears the reported balances from the VAT control accounts, typically to the “VAT Payable/Receivable” account, which is not a control account. This account is used in postings for payment transactions from the VAT reporting company.
