VAT Returns - timing issue with PVA monthly statements and manual adjustments required ?

PVA statements contain a months' Import VAT transactions, but are available on 8th of following month so can only be input into accounting system of the current new period. The last month posting can be outside the VAT Return reporting period / Quarter. So when completing Qtr VAT returns, we are continuously making manual adjustments to include the last months PVA VAT figures and remove the previous Qtr old period too, This is to ensure alignment of all transactions date/tax point for that actual reporting period covered, and also for the MTD platform submission too. As the net effect of posting any monthly PVA statement figures (output and Input VAT ) is zero VAT , is it necessary that we need to perform manual adjustments in the Qtr VAT return calculations and actual MTD submission?

Hi,

The PVA statement is available on the 8th of the following month and you have a month and 7 days to submit your return and payment after the end of the quarter.

Although the net effect of reporting the PVA figures is zero it is still important that you record your figures on the VAT return.

Thank you.

Hi HMRC Admin 2, We understand the timing of Qtr VAT submissions , however that is not the problem, it is the content and timing. So for MTD compliance, which is based on actual transactions held in the accounting systems for that reporting period /Qtr ( ie date of supply/tax point ). The PVA statement for the last month of each Quarter can only be posted into the system after the close of that accounting period, and will have a real time date, ie being outside the Qtr reporting dates. Please consider that by making manual adjustments in/out of MTD Qtr submission , we are mimicking the function of accruals /reversal of accruals - with VAT! ! Therefore to reduce risks with continuous manual adjustments in the Return filings, should we be able to only download and report the actual postings that are in our system , except for errors of course ? All manual PVA statements adjustments would only be for Net Zero VAT anyway - so no impact with actual final value of VAT Return and cash flows to/from HMRC. We remember that PVA was established for that very purpose , and may I add, is very much appreciated by UK businesses.

Hi,

We appreciate that the net effect of reporting the figures from your PVA statement is zero.

However, you still need to report the figures. It could cause an issue if the company had a visit from HMRC. even though the monetary effect is nil.

Thank you.