The federal VAT department requires an audit to show that all revenues of the own company have been declared correctly. Hereby it must be proven that the VAT Revenues on the invoices match the amounts on the VAT accounts in the accounting.
- On all items sold and on a customer invoice, there always has to be a correct VAT-rate assigned to. It might be as well 0%. There are items which have no apparent VAT (i.e. iTunes Cards, Vouchers). This is not entirely correct as they don’t have no VAT, they have 0% VAT. Only if the VAT-rate 0% is assigned to these items, they are displayed correctly in the VAT declaration.
- You have to be careful to book revenue manually without assigning a VAT-rate. We therefore suggest that you book all revenue via customer invoices and only use the predefined articles in the system. That way, mistakes can be avoided.
- When recording a Credit-Invoice (Purchasing) we can reclaim the VAT by assigning the correct pre-tax VAT rate. Here it can happen that you use a wrong VAT-rate. We therefore suggest to also work with predefined expense items to reduce errors.
- A comparison check of the VAT revenue against the Revenue account is a death du jour. We proceed in monthly steps.
- Create under Financials > Reporting > Print Income Statement for the monthly period to be audited.
- Create under Financials > Open Index a report of the VAT Revenue. Ideally the sums of the VAT of the revenue accounts match the VAT revenue and the effective VAT amounts are listed vertically.
- We only need to sum the revenue.
- If the revenues do not match:
- Create an account statement for each revenue account and check if every booking has a VAT-rate- Complete missing rates.
- If this does not help, we need to take the hard way and compare every single booking on both sides. Print under Financials > Reporting > Print Balance Sheet the bookings per revenue account of the respective period.
- On the other side double click the respective VAT code on the index chart: Now all bookings appear. Make sure that all bookings are really shown (maybe increase search limit). Create and print an export with the fields:
- Booking Line / Booking / Name
- Booking Line / Date effective
- Booking Line / Party / Name
- Now go down every revenue account sheet from top to bottom and check if the booking exists on the VAT revenue list and tick each line on both forms.
- All bookings that only exist on one of the sheets or habe an incorrect amount, need to be corrected.