Most efficient methods/software for dealing with VAT returns?

Hi,

I would just like to get some opinions on the methods and tools business admin use for dealing with VAT returns. For example, I simply save all VAT incurred purchase receipts which are related to my business and file them in a folder according to date, before I make my return at the end of each VAT period. I also have a generic check listing of my usual VAT incurred payments for each VAT period so as to ensure I always collect and submit them specific receipts. It's not at all complicated at the moment but I anticipate it to get more labour intensive as the business grows.

Does anyone use any specific VAT software and if so, how advantageous are they? Does freely available software such as Payback payroll software or quickpay3 have any such VAT related functions?

Thanks.

Do a google on and see the value for money option that comes up first.

Thanks Sinewave, that was the obvious first step that I just didn't think of Anyway, it seems that VatMan Software and QuickVat from Aisling Software seem to fit the bill but can anyone advise on these i.e. has anyone had any experience or know of anyone that uses these software packages??

Any good accounts package designed or modified for the Irish market should be able to prepare either a VAT return or a report with all the totals you need to enter on the VAT form. If you intend to computerise your accounts at any point this might be worth considering.

I just noticed something on that 'VATMAN' website...

thevatman.ie said:

2. Do not pay VAT to the Government, unless you have actually received it. The fact that you have invoiced for it is not good enough.

So, only file and calculate invoices and receipts that have been settled.

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Is this correct? I though that only applied if you ran your business on a 'moneys received' basis...

revenue.ie said:

8.1 Unlike the normal invoice/sales basis of accounting where VAT-registered traders become liable for VAT at the time of issue of invoices to their customers or of sales made by them regardless of whether or not they have received payment from those customers, under the moneys received or cash received basis of accounting, traders do not become liable for VAT until they have actually received payment for goods and services supplied.

Click to expand...

Can anyone clarify this as I could be in for a big surprise if I'm wrong!!

Hi
Buttermilk you're right about the 'moneys received' basis of VAT accounting... the Vatmans website does mention that by the way...

It's funny because your mans program doesn't appear to make it easy to use the 'moneys received' basis... by this I mean people would enter invoices as they receive them... if they then get paid months later they would have to update that entry to indicate it's now paid so it can be claimed in the current VAT period... maybe his program does do this but it doesn't appear so... the workaround would be to only enter invoices as they're paid, and have them sitting around until then...

Cheers
Joe

ivorystraws said:

Thanks Sinewave, that was the obvious first step that I just didn't think of Anyway, it seems that VatMan Software and QuickVat from Aisling Software seem to fit the bill but can anyone advise on these i.e. has anyone had any experience or know of anyone that uses these software packages??

Click to expand...

I have experience of using QuickVAT from Aisling Software. It is very handy for doing VAT returns. You only put into the sales invoices side the money you've received (for cash receipts basis for VAT) and you put all your purchases into purchases and ta-da a VAT 3 form comes out. It also does the year end Return of Trading Details VAT report. Aisling also does a product called SortMyBooks which I upgraded to last year. With SortMyBooks you can put in all your sales invoices when they are due to your customers but SortMyBooks will calculate your VAT on the money you record as having received against these invoices. Very handy not just for VAT but for tracking who owes you money.

Hi Anne2111,

Thanks for your comment. I'm currently trialing the SortMyBooks package from Aisling Software. How much is it to buy and are you connected with Aisling in any way?