What to do if items were included or excluded in a VAT Return in error
Table Of Contents
If you discover an error after a VAT Return has been submitted, it is important to follow the correct process to ensure your accounts remain accurate and auditable.
Important
Warning: Before making any changes relating to a VAT Return, always consult your accountant.
Once a VAT Return has been committed in Khaos Control, it cannot be amended.
If Incorrect Values Were Included
If values were included on the VAT Return in error, we recommend entering correcting transactions using the SP Ledger.
When creating the adjustment:
- Enter the relevant correction values.
- Add detailed notes explaining why the adjustment was made.
- Include enough information to make the correction easy to audit in the future.
This helps maintain a clear audit trail and supports any future review of your VAT records.
If Transactions Were Missed from the VAT Return
If transactions should have been included in the VAT Return but were omitted, use the Advanced Processing Method for VAT Returns.
The Advanced method allows you to:
- Specify custom date ranges.
- Select transactions that were missed from a previous return.
- Include those transactions in a subsequent VAT submission where appropriate.
This provides greater control over the transactions included in the VAT Return and can help correct omissions.
Best Practice
Before making any VAT adjustments:
- Review the transactions involved.
- Discuss the proposed correction with your accountant.
- Ensure any manual adjustments are fully documented.
- Keep clear notes for audit purposes.
Accurate records and detailed explanations will help ensure your VAT reporting remains compliant and easy to reconcile.