Tax Transactions

The tax section is split into three categories:

  • Tax Returns and Reports
  • Tax Adjustments
  • Tax Payments and Refunds

Tax Returns and Reports

In Sage One Accounting you are required to manage your tax returns using the Tax Returns and Reports screen.

To access the Tax Returns and Reports screen, click on the Accountant’s Area…Tax…Tax Returns and Reports menu option.

Click on the Next button to continue.

Enter your Company Tax Number.

Each tax period requires a submission and typically ends on the last day of the month with the submission typically due on the 25th of the following month. Enter your last Tax Period End Date and your last Tax Submission Due Date. We will use these dates to determine your next Tax Period End Date and when your next Tax return is due.

Click on the Next button:

Click on the Finish button.

Purpose of the Tax Returns and Reports Screen:

Tax is a strictly regulated area of any business and keeping your figures accurate, reliable and up to date is essential to avoid issues with the authorities. With the Tax Returns and Reports screen you will be able to control all of your tax reporting from one central place.

Your tax reporting does not always correlate to your financial reporting. Sometimes you will record transactions in one month and only account for the tax in another month, this can often happen if you are behind on your processing.

With the Tax Returns and Reports Screen you will assigning transactions to particular tax periods, and not specific date ranges.

Benefits of Tax Periods:

  • These should agree to what you actually submit to your local revenue authority.
  • Amounts owing should agree with the tax payments that you have made.
  • No editing of transactions that have been submitted to the Revenue Authority.
  • Back dated transactions will pull through to the current Tax Period (i.e. no missing of Tax Transactions).

The screen will display a list of all of your Tax Periods detailing relevant information pertaining to each period:

  • Tax payable or refundable for the period
  • Associated payments and refunds made for each period
  • Quick link to the Tax Report relevant to that period

The following screen will be displayed:

The table below will explain all the fields on the screen above:

Field Explanation
Close Tax Period If you select the Close Tax Period button, Sage One Accounting will close off the current tax period that you are working in and move over to the next tax period.
Reopen (a previous tax period) Reopening a tax return should only be done if your intention is to resubmit your tax to your revenue authority. For Example: All transactions in the tax return for 12/2013 will be unmarked as finalised and you will be able to edit these transactions. Any transactions that have been back dated prior to and including 31/12/2013 and that have not been included in any other tax return will be included in the 12/2013 tax return once you close this tax period.
Start Over? If you select this option, all of your Tax Returns will be removed and you will have to set it up again. The values for each return may differ to the actual returns you have submitted to your revenue authority. Please be careful before selecting this option. Consult with your financial practitioner.
View (Previous Tax Report) This option allows you to view the tax report for a previous Tax Period.
Payment/Refund You can allocate your Tax Return amounts to the correct tax period by selecting the Link Payment and Link Refund option.

You will also have access to your standard Tax Reports via the Reports button:

Tax Adjustments

In the Tax Adjustments screen, you are able to adjust either the input or output tax.

You can make adjustments to the amount of tax that you owe or are owed. You should therefore be certain of the amount you enter. All tax adjustments will be included on the Tax Report.

You will need to specify whether the adjustment you are processing will affect Input Tax or Output Tax.

The following table will help you remember when input and output tax applies:

Tax Type Explanation
Output Tax If you sell items to customers, which means items (stock) are leaving your business, it is referred to as output tax.
Input Tax If you buy items from your suppliers, which mean you are receiving items (stock) into your business for resale or business use, it is referred to as input tax.

Your accountant will process the required tax adjustments for your business.

  • Select the Accountants Area‚ĶTax Adjustments menu option.
  • The following screen will be displayed:

Tax Payments and Refunds

Tax reports must be submitted to your local tax authority on a regular basis, and will either indicate that you need to pay tax over or receive a refund.

Since the tax laws of your country govern tax processing, it is of extreme importance to ensure that you process the adjustments, payments and refunds correctly.

Sage One Accounting will calculate your tax for you as shown below. Your Input Tax is calculated by establishing the tax included on all purchases – item and non-item based – that you have processed in Sage One Accounting. Next, your Output Tax is calculated by establishing the tax included in all of the sales – item and non-item based – that you have processed in Sage One Accounting. The difference between the two is the amount of tax that you owe. If your input tax is higher than your output tax, you will be due a tax refund.

You can process tax payments and refunds that will automatically create a payment or receipt to your selected bank account.
You will see a tax summary for the date range you have selected. To view any payments or refunds already processed print the Tax Payments and Refunds report. Any payment or refund processed in the date range you have selected will be excluded from this summary as they are considered to be payments or refunds pertaining to a previous tax period.

In the Details screen, you will edit the date for the transaction and the bank account that will be affected. You will then enter the Reference and Description for the transaction. You are able to edit the value of the amount in the Detail section of the screen; however, this is not recommended.

To process the Tax Payment, click the Finish button.

Tax Reports

Tax Report

A Tax report lists tax transactions for reporting purposes. This report is also available in the Reports menu. You have the option to print the report in detail or in summary, with or without tax adjustments. You can also include payments and/or refunds in the report. You can set if the report must offset all the credits on sales or purchases.

Each Tax Report can be run either by Tax Period or by a selected Date Range.

You have the selection to preview the report as monthly, quarterly, yearly, month to date, quarter to date, year to date, life to date, custom to date, last month, last quarter and last year. If you select the custom dates option, you can select the date ranges from the calendar look up fields.

Check the Offset Credits on Sales / Purchases check box to offset credits against sales or purchases. Uncheck the check box to show these separately. This option only applies to customer and supplier credit transactions.

Tax Audit Report

This report lists all of the original Customer Tax Invoices and Credit Notes that were emailed and marked as Computer Generated.

Each Tax Report can be run either by Tax Period or by a selected Date Range.

Tax Payments and Refunds Report

This lists the payments made and refunds received from the revenue service.

Each Tax Report can be run either by Tax Period or by a selected Date Range.

Tax Summary Report

This report gives you an overview of your Tax position either per period or per month.

Each Tax Report can be run either by Tax Period or by a selected Date Range.

Tax Transactions Report

This is a detailed report showing the transactions making up your Tax Payable balance.

Each Tax Report can be run either by Tax Period or by a selected Date Range.