VAT settlements

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The VAT settlement function can be found under Finance/Reports/VAT reporting/VAT settlements.
The VAT settlement function can be used for the following functions, which are all described below:

  • View a VAT specification with the option to correct any VAT errors
  • Print a VAT statement (also called a VAT report)
  • Pay VAT electronically to SKAT
  • Automatic posting of VAT invoices

VAT billing functions will not work correctly/show the correct amounts if the VAT setup is not correct. Read more about this below.

Setting up VAT

VAT setup is done under Finance/Maintenance/VAT and in the chart of accounts under Finance/Chart of accounts.

Read more about creating VAT codes and see examples of setting up VAT codes here.
Read more about setting up VAT system accounts here.

Watch a video on VAT setup here.

VAT specification

The VAT specification can be used to get an overview of which accounts you have booked with VAT, which VAT codes have been used, etc.

The VAT specification must also be created in order to subsequently print the actual VAT statement (VAT report), which shows the VAT to be paid to SKAT.

You can watch a video on how to view a VAT specification and make a VAT settlement here.

Note! If journal entries are included on the VAT specification, the VAT specification/VAT settlements cannot be used to settle VAT because taxes from the journal are not included until they are posted. It is therefore always recommended to post all Posted transactions in the current VAT period before creating VAT specifications/VAT settlements and settling VAT.
VAT specification, these can be changed using the editing functions.

Create a VAT specification for an unsettled VAT period

  • Select Finance/Reports/VAT reporting/VAT settlements
  • Select button Create
  • Enter the period you want to see the VAT specification for and select OK
    Note! The From date is automatically suggested as the 1st date after the last VAT settlement date. To date is automatically calculated using the Value in the VAT Period field under Company/Company information, but the date suggestion can easily be changed manually.
  • The VAT specification is now displayed on the screen, with the option to take a closer look at the underlying Transactions button.
    TIP! If, for example, you see 2 lines with your account for office supplies on your VAT specification, and one line is shown with regular Danish purchase VAT, and the other line is shown with an Amount in the column Without VAT code, you can mark the line with the amount without VAT code, and using the Transactions button on the ribbon, you can view the Posted transactions without VAT in the period, and quickly check if it is correct or not.
  • Once you have checked the VAT specification and corrected any errors, you can print a VAT report to the screen using the VAT statement button. Read more about correcting VAT errors below.
  • If the VAT report is as desired, you can select the Save VAT settlement button from the VAT specification screen and answer Yes to save the VAT settlements for the selected period.
    In the VAT settlements overview underGeneral Ledger/Reports/VAT reporting/VAT settlements , a line has now been created with this VAT period, and from here the VAT can now be settled electronically to SKAT and the VAT settlement can be posted. Read more about this below.

View the VAT specification for an already settled VAT period

  • Select Finance/Reports/VAT reporting/VAT settlements
  • Place the cursor on the VAT period you want to see the VAT specification for
  • Select the VAT specification button
  • The VAT specification for the selected period is displayed on the screen
  • Select the VAT statement button to see the VAT amounts to be paid to SKAT.

VAT specification per country

If you are registered for VAT in several countries and/or are covered by the one-stop VAT rules, you can fill in the Country field on the VAT specification with e.g. 'Germany', and in this way you will see the VAT relating to Germany.
If the Country field is not filled in on your VAT codes, these VAT codes are automatically considered to belong to your company country. If you select the country 'Unknown' on the VAT specification, all VAT codes will be included regardless of their VAT country.

VAT report

You can view a VAT report by selecting the VAT statement button from the VAT specification.
Read how to create a VAT specification above.

Note! If journal entries are included on the VAT specification, the VAT specification/VAT settlements cannot be used to settle VAT because taxes from the journal are not included until they are posted. It is therefore always recommended to post all Posted transactions in the current VAT period before creating VAT specifications/VAT settlements and settling VAT.
VAT specification, these can be changed using the editing functions.

In the article on VAT operations, you can read which VAT operations etc. are included where on the VAT report. Read more here.

Does your VAT return look wrong? Read more here.

Include VAT amount from old fiscal year. fiscal year

For example, if you have an unsettled VAT amount, an electricity tax or similar, which is booked in an old financial year (e.g. 2023) and which you want to include in your VAT report for the first half of 2024, you need to "move" this VAT amount/tax to a correct period.

You can do this by posting the amount away from the incoming VAT account or the tax account, i.e. the account where you can see the balance if you print a balance for 2023. You do this with the date 31/12 23.
The counter account is your VAT settlement account.
At the same time, you then post the amount into the same account again and away from the same counter account as before, but with the date 1/1 24. You do not change your totals in your 2023 accounts, but you move the amount to the 2024 period so the item is included for this period instead.

Note! The reason why the above is not done automatically is because SKAT wants the Amount to be declared for the "old" period instead.

Settle VAT to SKAT

When a VAT settlement has been created for a VAT period as described above under the heading 'Create VAT specification for a VAT period not yet settled', the VAT can be settled electronically to SKAT as follows:

  • Select Finance/Reports/VAT Reporting/VAT Settlement
  • Place the cursor on the VAT period you want to charge VAT for
  • Select the Report to button and answer Yes to settle the VAT to SKAT.
    The VAT is transferred to SKAT using an API connection and the Transferred field is refreshed with the date of the transfer.
    A receipt is automatically received back from SKAT, and this can be viewed by selecting the Receipt button.Note! The VAT amounts transferred to SKAT must be approved directly on SKAT's website, so you must log in to SKAT's website in the normal way, approve the VAT amounts to complete the VAT settlements and view the payment ID.

Please note that this only works for the top line of your VAT invoice image. You can watch a video showing the automatic posting of VAT settlements here.

Account for VAT settlement

When a VAT settlement has been created for a VAT period as described above, the VAT settlement can be posted automatically.

Note! VAT settlements can only be posted if the correct System accounts for VAT are set up in the Chart of accounts, including the 'VAT settlements' System account. Read more about setting up System accounts here.

  • Select Finance/Reports/VAT Reporting/VAT Settlement
  • Place the cursor on the VAT period you want to book as settled
  • Select the Post directly button and, if necessary, select Simulate first to see how the VAT settlements will be posted.
  • Select the Post directly/Post directly button to post the VAT settlements.
    The Post number field is refreshed with the post number and the posted transactions can be viewed using the Posted transactions button. If the VAT settlements include VAT amounts from a previous VAT period that have not previously been settled, this will be visible in the text of the posted VAT settlements entries, as these entries are stamped with "...(previous period)" as part of the text.

You can watch a video showing the automatic posting of VAT settlements here.

Manual VAT settlement

You can also manually post your VAT invoice in an accounting journal.
If so, you should post the VAT due away from output and input VAT with the last date of your VAT settlement period and into a VAT settlement account.

For example, your VAT settlement for Q4 2023 should be booked with the date 31/12 2023, so that the manual entry that the VAT settlement is, does not "disturb" the VAT statement for the subsequent period (e.g. 1/1/24 - 31/3/24).

Account for the payment of VAT

When you need to book the payment of your VAT, you do this in an accounting journal by posting the total VAT amount to your bank account and to your VAT settlement account. You enter the payment with the date when the payment is completed in your bank account.

VAT to other countries

If the company needs to pay VAT to other countries, VAT codes can be created for this purpose, but these VAT codes should be created without filling in the VAT operation, Sales and VAT operation, Indkøb fields . You can also choose to fill in the VAT country field on these VAT codes, but the country to which this VAT relates.

Separate VAT accounts should also be created in the Chart of accounts for the foreign VAT, and in these accounts the System account field should not be filled in.

When making a Danish VAT settlement, you can delimit by country (i.e. the VAT country) so that the foreign VAT codes are not included on the Danish VAT report, and because the VAT accounts in the chart of accounts do not have a VAT operation and a system account specification, the VAT amounts from these VAT codes are not included on the VAT report and when posting the VAT settlement.

However, it is not possible to create a VAT settlement to other countries from a Danish account in Uniconta.

Description of buttons - VAT settlements

Below is a description of the buttons on the ribbon under Finance/Reports/VAT reporting/VAT settlements.

Name Description
Create Select this button to create a VAT accounting period.
Refresh Select this button to update the information in the screen if, for example, you have just posted the VAT invoice or similar.
Delete Select this button if you want to delete the VAT settlement period, for example, if you have created it with the wrong date or similar.
VAT specification Select this button if you want to view the VAT specification for the current VAT period.
Read more about the VAT specification elsewhere in this article.
Report to Transfer the VAT amounts to SKAT.
The Transferred field will automatically be stamped with a transfer date.
It may be necessary to select the Refresh button to refresh the screen before the date is displayed.
SKAT will subsequently return a receipt for the receipt, and this will be visible under the Receipt button.Note! This requires permission from SKAT.
See how permission is granted in the video here.
Accept
Receipt If VAT has been reported to SKAT using the Report to button, SKAT will subsequently return a Receipt for receipt, which can be viewed here.
Post directly Once you have settled the VAT to SKAT, either using the Report to button or manually by entering the VAT amounts on SKAT's website, you can post the VAT settlements using the button. this button.

It is possible to view a simulation of this first.
When the button is selected, choose which draft the VAT should be posted in and enter a comment.
It is recommended NOT to change the posting date for the VAT settlement, as this will automatically be equal to the last date in the VAT settlement period. After that, the VAT settlement will be posted automatically.

The Posting number field is automatically refreshed with the posting number when the VAT settlements are posted, and the Postedtransactions button allows you to view the VAT settlement entries.
Note! It may be necessary to select the Refresh button before these fields are updated.
Posted transactions The booked VAT settlement entries can be viewed using this button.
Posted by Here you can see who has posted the VAT invoice.
Layout Here you can edit, delete, save and download Layouts. Read more about this here.
All fields Here you can see all fields in an overview view.

Description of buttons - VAT specification

Transactions

If you place the cursor on an Account line with an amount and select the Transactions button or double-click on the amount next to an Account, the posting basis is displayed.

VAT statement

From the VAT specification, you can print a VAT statement (VAT report) where the VAT information is printed in the same order as you need to provide it when you settle the VAT amounts to SKAT.

The VAT report is printed by selecting the VAT statement button .

Value, please note that if taxes are to be shown on the VAT statement, the tax accounts in the Chart of accounts must have the System account field filled in with the correct tax values.

You can read more about which VAT codes/operations are included in which sections of the VAT return here

'Old' VAT return

From the VAT specification, by selecting the 'Old' VAT statement button, you can print a VAT statement (VAT report) that looks like the old VAT report at SKAT.

Save VAT settlements

Once you have checked that your VAT specification and VAT settlement show the correct amounts, save the VAT settlement for the period by selecting the Save VAT settlement button, and then the VAT can be reported to SKAT and the VAT settlement can be posted.
Read more about this elsewhere in this article.

Description of fields - VAT specification

Name Description
From date and To date In these fields you enter the From date and To date of the period you want to see a VAT specification for
Include journal In this field, you can limit the drafts whose VAT items you want to include on the VAT specification, even if they have not yet been posted. This way you can simulate a VAT statement without having posted your entries.

Note! The VAT specification does not include unposted taxes, so it is always recommended to post your Posted journals before saving, reporting and posting your VAT settlements.
Country field In the country field, you can limit the country so that you only see information about the VAT codes that are created in the VAT register with the VAT country you select.

If the VAT country field is not filled in for your VAT codes, these VAT codes are automatically considered to be part of your company country.

If you select the country 'Unknown', all VAT codes are included regardless of their VAT country.
Account - Account name Account number from the Chart of accounts together with Account name.
In brackets after the Account number and Name, the VAT code specified on the Account in the Chart of accounts is shown.
Accumulated Accumulated amount posted to the account.
One accumulated amount per VAT code is shown.
Without VAT code Accumulated Account transactions without VAT code.

NOTE! Do not post without VAT code on a VAT system account, unless it is on accounts with System account0 = 'Manually outgoing VAT', 'Manually incoming VAT' or tax accounts.
If you have done so, it will be visible in the columnWithout VAT code, and the VAT statement (VAT report) will be incorrect.
Read more about system accounts here.

VAT code created under VAT code created under Finance/Maintenance/VAT
VAT operation VAT operation which is specified on the VAT codes under General Ledger/Maintenance/VAT . It is the VAT operations that determine, among other things, where on the VAT statement/VAT report the amounts are included.
Rate The current VAT rate from the VAT register under Finance/Maintenance/VAT
Calculated VAT This shows a calculation of Rate x Accumulated

This field is a way to check if VAT has been calculated on the accumulated balance of the account. If you have changed the VAT code during the period, there will be a difference between the Calculated VAT and Booked VAT columns.

Note! No Amount is shown in this Column on lines with second-hand VAT.
Booked VAT The actual booked VAT
Difference The difference between the Calculated VAT and Booked VAT columns

Note! No Amount is shown in this Column on lines with second-hand VAT.

VAT related videos

In our video library you can find various videos related to VAT:

VAT setup
View VAT report/account for VAT
View VAT report/settle VAT including unsettled amounts from last VAT period
Create authorization for electronic transfer of VAT amounts to SKAT
Account for VAT settlement