Vat control account balance, pastel

[Jackievdw]

Hi. Please can someone advise me why my total nett vat is different to my vat control account balance in pastel and how do I correct this.
Thank you

[Neville Bailey]

There are a number of reasons that can cause this.

1. If you pay VAT or claim VAT for an amount that is different to the previous VAT report, as per Pastel, then there will be a difference when you run the VAT report for the next VAT period.
2. If you process back-dated transactions, that have VAT implications, into prior VAT periods.
3. If you process journals directly into the VAT Control Account, other than payments to SARS or claims from SARS. It is critical that you only use the relevant VAT code in the "Tax" column to process VAT entries, so that both the VAT Control Account and the VAT reports are updated in sync.

[Jackievdw]

Good morning Neville
Thank you for your reply. Please can you tell me how I can correct the vat balance for your reason number 1
Thank you
Kind regards
jackie

[Neville Bailey]

Hi Jackie,

If the difference is because of reason 1, then either:

• The VAT was processed correctly, but you paid SARS the incorrect amount; or
• The VAT was processed incorrectly, and you paid SARS the correct amount, based on manual calculations.

If point 1 is the case, then you need to over/underpay SARS by the difference when you submit your next VAT return, and then the VAT Control Account balance will tie up with the VAT report for the following VAT period.

If point 2 is the case, then you need to pass correcting entries in the prior months, so that the VAT is correctly calculated. For example, if you processed a cashbook payment for Bank Charges of R114.00 (VAT inclusive), but you omitted to claim the R14.00 VAT by using the VAT code 01, then you need to do the following two entries to fix the incorrect transaction:

• Recapture the payment in the cashbook, exactly as you captured it originally, i.e. without the VAT code, but put a minus sign in front of the amount. This will effectively reverse the original entry.
• Capture the payment in the cashbook once more, with no minus sign, but now include the VAT code in the entry.

Hope this makes sense.

[Jackievdw]

Hi.
I did an inventory journal on pastel but the amount reflected on the trial balance is completely different to the amount I actually processed. Why would they differ?
Thank you

[Natashca]

Hi.
I did an inventory journal on pastel but the amount reflected on the trial balance is completely different to the amount I actually processed. Why would they differ?
Thank you

If my Balance of Tax Control amount is R14030.50 and my Tax Total amount as per my report is R16060.96 - did I over or underpay SARS?

[Neville Bailey]

You have overpaid SARS.

[Tanja Reinhardt]

Hi Neville
I can't figure out how to ask a new question here, so I am hoping you will see this.
I have created a new company and have to take on OBs. All done except the VAT Controll account. I am trying to post August 2024 total debit and total credit with tax type 01 - 15% VAT.
However, the tax type keeps jumping back to 00. I would like my tax report to reflect both the August tax amounts (from the OB) and my new entries for September. My tax period is 01.08.24 to 30.09.24.
If I process the OBs without tax, will my tax type report not be wrong?
Kind Regards
Tanja

[Neville Bailey]

Hi Tanya,

At which date are you capturing opening balances?

[Tanja Reinhardt]

Hi Neville
31.08.2024 I think I have figured out in the meantime, that it is not possible to process anything to the VAT controll account with tax type 01. It always reverts back to Zero.