Tax Return

Before running this report for the first time, you need to:

1. Define your tax return periods.

   There are two methods you can use, depending on whether you need to use tax submission dates defined by your regional legislature or GL period end dates:

   • Using the use tax submission dates defined by your regional legislature:

     The Tax Return Period Maintenance program lets you define the start and end dates for each of your tax periods and years according to the tax submission dates defined by your regional legislature.

   The dates entered don't need to correspond to module periods or financial year periods.

   To use the dates entered in this program ensure that the Use GL periods for tax returns setup option (Setup Options > Tax > Company Tax Options) is not enabled (if tax periods have been configured to use GL periods, then the dates entered in this program are ignored).

   • Using GL period end dates:

     This method lets you use the GL period end dates instead of the dates defined in the Tax Return Period Maintenance program. You must enable the Use GL periods for tax returns setup option (Setup Options > Tax > Company Tax Options).

     The change only takes effect once you reload SYSPRO.

2. Run the Tax Return Setup conversion utility program so that any previously processed transactions can be reported correctly on the Tax Return report.

   A message is displayed if the conversion is successful.

   Ensure that all your data is backed up before continuing. If you have run the conversion before then existing data is overwritten.
   We don't recommend running this utility after you have changed the tax period.

3. Run the Sales Analysis Update program.

   This program lets you extract the daily sales transactions recorded in the Accounts Receivable and Sales Orders modules and update the appropriate records.

   The program also ensures that the tables used by the Tax Return program are updated.

   You can run the program as often as required. The frequency depends on the volume of sales orders processed and is typically run daily or weekly to ensure that the data reflected on your Sales Analysis reports is accurate and up to date.

4. Run the Tax Return Status program. Alternatively, you can use the Executive View pane to add customized panes to have a Detail or Summary view without needing to run the Tax Return Status program.

5. Run the Tax Return program.

   This program lets you generate a report that consolidates sales tax information for ease of submitting tax returns to authorities.

   The report is designed to meet the MTD tax requirement as set out by UK legislation.

   You must print a report before submitting a tax return, if you haven't already printed one.

   To print a report, do the following:

   1. Select the Unprinted option in the Reprint field and process the report.
   2. Run the report again to submit the tax return.
   3. Select the Reprint excluding submitted option in the Reprint field. This enables the Submit tax return option.
   4. Select the Submit tax return option and process the report.

• Tax information is taken from the following modules:

  • Accounts Receivable (via the Sales Analysis module)
  • Cash Book
  • Sales Orders
  • General Ledger

  • Accounts Payable

• Tax on Settlement discount is only included on the report when a Default tax code in the Settlement discount drop-down is defined (Setup Options > Tax > Accounts Payable) and the tax code for settlement discount against the released invoice is not spaces.

• The tax on settlement discount entries are printed on the report with a PS (AP Tax on Settlement discount) in the Source column.

  If an invoice was released in a previous version of the Payment Cycle Maintenance or AP Release Invoices to Pay by Review programs, then the settlement discount Tax code field will be blank by default. Unless this was changed before the invoice was paid, no settlement discount tax will appear on this report for that invoice.

• QST tax on Settlement discount is currently not included on the report.
• Accounts Receivable tax on Adjustments is included on the report. It's considered an Output Tax and is denoted by AS in the Source column.
• Accounts Receivable tax on Settlement discount is included on the report. It's considered an Output Tax and is denoted by AR in the Source column.
• The For the period block is not printed when the Use GL periods for tax returns setup option is enabled (Setup Options > Tax > Company Tax Options).
• The layout of the Summary report is based on the VAT100 system used in the United Kingdom.
• The tax for transactions posted in the Cash Book Deposits and Withdrawals program (where the transaction amount equals the tax amount) is displayed in Block 4 and Block 5 only when an Exclusive Tax basis was used. If an Inclusive tax basis was used, then the tax breakdown reflects incorrectly as it is assumed that a portion of the invoice amount reflects merchandise.

• The following sections are printed on the last page of the report:

  Field	Description
  Block 1	This block displays the total tax amount on all Output tax types based on the Sales Orders, Accounts Receivable and the Cash Book modules. This is the VAT due on all goods and services supplied by the business for the period range defined in the report. This forms a part of the Output VAT for the period specified.
  Block 2	This block displays the total tax amount on EC Acquisitions of Input type tax based on the Accounts Payable module. This is the VAT due on all goods (including their related costs) bought from VAT-registered suppliers in other EU member states. These purchases are referred to as acquisitions. Related costs cover the supplier's costs in creating the supply, such as packing, transport or insurance. This amount may be reclaimed as Input VAT, according to criteria, which can reflect in Block 4. This block is blank if EC VAT is not installed.
  Block 3	This is the sum of Block 1 and Block 2. This block displays the Output VAT for the period specified.
  Block 4	This block displays the total amount of deductible VAT (Input tax) charged on business purchases based on the Accounts Payable and Cash Book modules. The value of tax on settlement discount is shown as negative. When processing a Void check, the sign is reversed.
  Block 5	This block displays the difference between Block 3 and Block 4, where the smaller figure is subtracted from the larger figure. If the figure in Block 3 is greater than the figure in Block 4 the difference is the amount that the business is liable to pay. If the figure in Block 3 is less than Block 4, the business is due to be paid the balance. This is subject to queries that the tax authority may need to make. The value of tax on settlement discount is shown as positive. When processing a Void check, the sign is reversed.
  Block 6	This displays the total value of all your business sales and other specific outputs, excluding VAT. The tax codes defined in Tax code excluded from return field are omitted in the calculation of the figure in this block.
  Block 7	This block displays the total value of your purchases and expenses excluding VAT. The calculation for this figure also includes the value of imports, acquisitions from VAT-registered suppliers in other EU member states and reverse charge transactions. The value of tax on settlement discount is shown as negative. When processing a Void check, the sign is reversed. The tax codes defined in Tax code excluded from return field are omitted in the calculation of the figure in this block.
  Block 8	This block displays the total value of all supplies of goods to other EU member states with Purchase Type 2 and Tax Status E (exempt), including directly related costs such as freight and insurance. This block includes the value of any goods dispatched from the UK to a destination in another member state (even if no sale is involved, or if the sale is invoiced outside of the EU). This block includes values for both taxable and non-taxable EC members. VAT is omitted from the calculation of this figure. This block is blank if EC VAT is not installed. The tax codes defined in Tax code excluded from return field are omitted in the calculation of the figure in this block.
  Block 9	This block displays the total value of all acquisitions of goods from VAT-registered suppliers in other EU member states, including directly related costs such as freight and insurance. VAT is omitted from the calculation of this figure. This block is blank if EC VAT is not installed. The tax codes defined in Tax code excluded from return field are omitted in the calculation of the figure in this block.

• You can improve the performance and speed when producing SRS reports (or running batch programs) by enabling the Tickover refreshes on reports/batches option against an operator (SYSPRO Ribbon bar > Setup > Operators).

  The field indicates how often the system must notify the operator of its progress when producing reports or running batch programs and can be defined by time (i.e. seconds or minutes) or record count (i.e. number of rows processed).

  For example:

  Changing the default tickover refresh rate from 1 row to 5000 could improve performance if the operator was processing a large number of stock codes, as it's probably not necessary to view each individual stock code as the program runs.