Correcting VAT return

Disclaimer

All screenshots in the article were taken in the Dutch version of Yuki.

A closed VAT return is processed directly in the financial administration, whereby the recorded VAT of the processed purchase and sales invoices. bank transactions and/or general journal entries form the basis.

It is possible to manually correct a VAT return in Yuki, for which Yuki automatically creates general journal entries (correction entries).

TIP!

Yuki always expects all purchase invoices, sales invoices and bank transactions to be processed in the relevant VAT accounting period. All transactions processed with a date in a closed VAT accounting period are automatically included in the next draft VAT return.

A VAT return in Yuki can be corrected in the following ways, depending on the status of the VAT return: 

• VAT return not closed:
  • correct or delete processed purchase invoices, sales invoices and/or bank transactions included in the VAT return

    The posted VAT of these purchase invoices, sales invoices and/or bank transactions is automatically adjusted by Yuki, no correcting entry is required.
    
    

  • adjust the amount of the base or the amount of sales tax of one or more items in the VAT return because, for example, purchase and/or sales invoices are missing
    A correcting entry is automatically made by Yuki to correct the specified balance. This general journal entry takes the place of the missing purchase invoices, sales invoices and/or bank transactions. When the VAT return is closed, this correction entry is included in the draft VAT return of the next VAT accounting period.
    
    The posted VAT of these purchase and sales invoices and/or bank transactions posted later (next VAT period) in Yuki should then, on balance, be offset against this correction entry.

• Closed VAT return
  • correct or delete processed purchase invoices, sales invoices and/or bank transactions included in the VAT return
    A correction entry is automatically made by Yuki in the draft VAT return for the next VAT accounting period in Yuki.
    
    TIP!
    All corrections can be found at the bottom of the draft VAT return of the next VAT accounting period under the item Included from another period.

For a detailed description of the different statuses of the VAT return, see article Status of VAT return in domain.

Example correction entry

The reversal of an automatic correction is always made to the same VAT ledger account.

The quarter 1 VAt return is manually corrected with respect to the high VAT rate:

A negative amount is now included in the quarter 2 VAT return, however, a number of sales invoices are still missing. If the missing sales invoices are still processed in the administration, they are automatically included in quarter 2:

After the sales invoices have been processed in Yuki, the correction entry is offset against this.

Correction of private use (e.g. car)

A correction in private use must be recorded directly in costs in the last VAT accounting period of the financial year via a manual general journal entry.

An additional account can be created for the costs account via general ledger account '42990 Other vehicle costs'.

For VAT deductibility, ledger account '18300 VAT on private use' (Heading 1D) can be used. If the private use of the car is not clear from the administration in Yuki, a VAT percentage of 2.7% of the catalogue value (including VAT and BPM) of the car must be calculated manually.

ATTENTION!

If no VAT was deducted when the car was purchased (purchase of a margin car or from a private individual) or if the private use takes place later than 4 years after the year in which you put the car into use, you take a VAT percentage of 1.5% of the catalogue value (including VAT and BPM).

Correcting VAT return

The following describes the steps to follow for correcting a VAT return with one of the following statuses:

• Draft
• Ready to be sent
• Closed
• Sent differently
• Closed (historical)
• Closed (not sent)
• Posted to Fiscal unity
• Closed (in Fiscal unity).

VAT return with status 'Draft'

A VAT return with status 'Draft' can be corrected by correcting, processing and/or deleting the relevant documents and bank transactions in the administration. This automatically corrects the draft VAT return by Yuki.

Yuki does not record any correction entries for this because the VAT return has not yet been processed in the administration in Yuki.

To correct the amount of the base or the amount in one of the items of the draft VAT return itself, click on the Correct button. When closing the corrected draft VAT return, this correction entry will be included in the draft VAT return of the next VAT accounting period.

VAT return with status 'Ready to be sent'

A VAT return with this status has been approved by the administration office or accountant, making the VAT return ready to be sent to the tax authorities.

If the entrepreneur (customer) indicates that the VAT return is incorrect or incomplete. the return must be corrected.

The approved VAT return can be corrected by correcting, processing or deleting the relevant documents and bank transactions in the records. This automatically corrects the VAT return by Yuki.

No correction entries are recorded by Yuki because the VAT return has not yet been processed in the administration in Yuki.

TIP!

If the administrative office or accountant has indicated in the portal that the entrepreneur (customer) must approve the VAT return before it can be sent to the tax authorities, the audited VAT return can no longer be corrected after the entrepreneur has approved the VAT return. In that case, the VAT return is in fact sent directly to the tax authorities.

If corrections have been made after the VAT return has been approved, the status of the VAT return will change to 'Ready (corrected)'. 

VAT return with status 'Closed'

The VAT return was sent via Yuki to the tax authorities, received correctly by the tax authorities and then processed in the administration in Yuki.

If an incomplete or incorrect VAT return is later found, the VAT return can be corrected by correcting, processing or deleting the relevant purchase invoices, sales invoices and/or bank transactions. If this changes the base of the VAT return, the correction will also be included in the draft VAT return of the next VAT accounting period in Yuki.

TIP!

If all VAT returns for a year have already been closed, the correction will be included in a supplement automatically created by Yuki.

VAT return with status 'Sent differently'

If the VAT return has not been sent to the tax authorities via Yuki, the VAT return generated by Yuki must always be corrected so that it is identical to the VAT return sent to the tax authorities. To do this, click on the Correct button.

The amount on which sales tax is calculated and/or the amount of sales tax itself can be adjusted for all items in the VAT return.

For the difference in the amount to be paid or received between the VAT return sent to the tax authorities and the corrected VAT return in Yuki, a correction entry is made by Yuki only when you change the status of the VAT return from 'Sent differently' to 'Closed (historical). This is because the VAT return is processed in Yuki in this case.

A manual correction can always be undone by opening the corrected VAT return and then clicking on the Undo correction button.

VAT return with status 'Closed (historical)'

A VAT return with this status is not sent to the tax authorities but is processed in the administration in Yuki. The VAT return can be corrected as follows:

• Click on the Clear VAT return (this cannot be undone) button to clear the VAT return
  
  
  TIP!
  Make a print screen of the VAT return first before clearing the VAT return.
  This allows later verification that the draft VAT return restored by Yuki is identical to the blank VAT return and, if necessary, the manual corrections can be reproduced.
  
  
• All VAT transactions from a cleared VAT return can then be included again in a draft VAT return:
  • Click on the List button to open the VAT returns overview again
  • Click on the Fix unassigned VAT transactions button to supposedly 'fix' the VAT transactions
• Manually record the necessary correction(s) in the new 'fixed' draft VAT return
• Set the VAT return to status 'Closed (historical)' again. 

The manual correction is automatically reversed by Yuki through a general journal entry in the draft VAT return of the next VAT accounting period in Yuki.

VAT return with status 'Closed (not sent)'

A VAT return with this status is not sent to the tax authorities but is processed in the administration in Yuki. The VAT return can be corrected by:

• clicking on the Clear VAT return (this cannot be undone) button to clear the VAT return
  
  
  TIP!

  Make a print screen of the VAT return first before clearing the VAT return.

  This allows later verification that the draft VAT return restored by Yuki is identical to the blank VAT return and, if necessary, the manual corrections can be reproduced.
  
  

  • All VAT transactions from a cleared VAT return can then be included again in a draft VAT return:
    • Click on the List button to open the VAT returns overview again
    • Click on the Fix unassigned VAT transactions button to supposedly 'fix' the VAT transactions
  • Manually record the necessary correction(s) in the new 'fixed' draft VAT return
  • Click on the Fiscal unity button to post the VAT return to the VAT return of the Fiscal unity again.
    The VAT return will regain the status 'Posted to fiscal unity'.

No correction entries are recorded by Yuki because the VAT return has not yet been processed in the administration in Yuki.

VAT return with status 'Closed (in Fiscal unity)'

A VAT return with this status forms part of a closed VAT return of a Fiscal unity. Thus, the VAT return was sent to the tax authorities via Yuki as part of the VAT return of the Fiscal unity, received correctly by the tax authorities and then processed in the administration in Yuki.

If an incomplete or incorrect VAT return is later found, the VAT return can be corrected by correcting, processing or deleting the relevant purchase invoices, sales invoices and/or bank transactions. If this changes the base of the VAT return, the correction will also be included in the draft VAT return of the next VAT accounting period in Yuki.