Whilst Coconut does not allow you to file VAT returns, it can be used to support your VAT registered clients alongside bridging software.


Enabling VAT for a client

Your clients can enable VAT from the Business Profile section of the More tab in the Coconut app.

Recording VAT

Your clients can record VAT on transactions from the Coconut app. You can also record VAT in the Accountant Platform.

Supported VAT Schemes

Coconut supports both the Standard and Flat Rate schemes. Note, Coconut's accounting is driven primarily by bank connections and because of this works on a cash basis, so Coconut is best for clients using the VAT Cash Accounting Scheme that can be used by businesses with turnover under £1.35m (see https://www.gov.uk/vat-cash-accounting-scheme).

Filing MTD-compliant VAT Returns

To complete an MTD-compliant VAT return for your clients, you can use the following VAT Return Generator. To use it, export the CSV transaction data from the Accountant Platform for your client and import it into the VAT Return Generator:

Format

Link

Google Sheets

View Spreadsheet*

* Then click File > Make a copy

Microsoft Excel

Download Spreadsheet

You'll find the instructions for using the VAT Return Generator detailed in the document itself. Note that under the MTD rules, the Spreadsheet will count as your VAT record.

To see an example of a completed VAT return using the VAT Return Generator, see here: VAT Return Generator - Completed Example

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