I posted a purchase invoice in Q1. I reported the VAT. Then, in Q2, I discover a tax error. I use a journal entry to post the costs credit with the wrong VAT code and debit with the correct VAT code. When I want to report the VAT of Q2 I’ve noticed that the transaction is in the Tax summary report in Q2 in the (details of the) Net Sales column!!! Why?
The revenue I report for the VAT to the Tax authorities is now higher then the revenue in my P&L (revenu, not profit), which I use to report my income tax. The Tax authorities do a cross reference between my VAT revenue and my income tax revenue. They have to be the same!
I’m afraid that the report is not correctly defined. It doesn’t take into account the account type (“less”/Expenses) on the transaction type ‘Journal Entry’. Or is it something else?