Recording VAT Payment

Lots of VAT registered businesses use Tally, which is why we've made the process of recording VAT payments very straightforward.  Most of the work is done automatically, and it's just a matter of clicking a few buttons to make sure the payment is recorded in your accounts.  Of course, if your business is not VAT registered you won't have to worry about this!

Submitting a VAT return automatically makes an entry into your accounts, so the amount of VAT you owe is recorded against the "VAT Control" code; this will help you to make sure that you don't lose track of the payment!  However, it does mean that once you've submitted your VAT return, you will need to show the VAT payment in your bank account in Tally.  This is a very simple process, and is done in the same way as entering any other transaction into your bank account in Tally.

To record the fact you've made a VAT payment, just click on the Bank tab and then click "View/Add Transactions" next to the bank account from which you are paying HMRC.  Once you've selected the correct bank account, it's simply a case of adding a transaction to the account to show money going out for the relevant amount.  You can also enter any other relevant information here, like the date the VAT payment was made and other comments you may wish to make about the payment.

When entering the payment, you should make sure to select "VAT Control" from the drop-down list for the 'type' of transaction.  Once all that's done, just click 'Enter Transaction' and the VAT payment will be recorded in your accounts.

Whether you're already VAT registered or just thinking about it, there's more information on VAT payments, rates etc on HRMC's website.

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