VAT 201 Negative value

[ngsanthosh]

Being aware that VAT 201 doesnt allow negative values in its fields, May I know where to record Credit notes and Debit notes in VAT 201 Return, Also please let me know where to record exempt credit note?

Thanks

[Dave A]

I didn't know you couldn't put a negative value into the VAT 201 return... (just know I'm going to test this with my next return )

The short answer is invoices and credit notes are not accounted for separately from each other.

So as example - when it comes to the category of Supply of Goods and / or Services by you - Standard rate (excluding capital goods and / or services and accommodation) (Category 1), you will post the aggregate value of amounts invoiced and credited by you for this category. For most of us, this means we will never end up in a situation where that aggregate amount is a negative.

But I can imagine scenarios where it is possible - a VAT vendor with low volume high value transactions dealing with the reversal of a transaction that isn't sufficiently offset by other transactions during the period...

[ngsanthosh]

https://www.theforumsa.co.za/forums/...ive-output-tax

Having seen this, it is clear that we need to record credit notes in "Other" box of input vat section. The only question is, Is negative values accepted during filing. if not how the credit notes of exempt transactions can be recorded in same box,Although aggregated results, it will cause negative value.

??

[Dave A]

I had stopped short of recommending box 18, but clearly a viable option to solve the problem.

[Justloadit]

So as example - when it comes to the category of Supply of Goods and / or Services by you - Standard rate (excluding capital goods and / or services and accommodation) (Category 1), you will post the aggregate value of amounts invoiced and credited by you for this category. For most of us, this means we will never end up in a situation where that aggregate amount is a negative.

But I can imagine scenarios where it is possible - a VAT vendor with low volume high value transactions dealing with the reversal of a transaction that isn't sufficiently offset by other transactions during the period...

Another example, more befitting a manufacturer, you get a large order which takes you 3 months to manufacture then invoice, but require to purchase the raw materials to manufacture, you would claim the VAT during the manufacturing time, and would also place you in a negative VAT situation.

Another example is exporting goods, where the foreign customer collects directly from your factory when exporting, you have to issue a VAT exempt invoice, as this is export, however you have purchased all the materials and have an input VAT prior months before completion, again placing a negative VAT situation.

[ngsanthosh]

Suppose I have ZAR 250, an exempt transaction. it will be recorded in Field 3 - (Exempt and non-supplies). Now when I create credit note for this exempt, should it be reversed in same Field 3 ( which may cause negative value) or Should it be recorded in "Other - Field 18" box?