Summary: If you are using the non-deductible VAT module, the new report "VAT reconciliation report" will not work properly.

Reason 1:

When showing the amount for VAT, purchase or sales, it seems to take the total VAT amount and print. This is not correct field to use in the report, at least not alone. If you are using the non-deductible VAT module, the value for your VAT statement is the value from the "Amount" field in the VAT Entries.

Example:

If you have an invoice for 125 DKK including vat, the VAT amount is 25. If the NDV setup says 20% deductible, the VAT will be DKK 5 deductible, and DKK 20 non-deductible. Currently the report will say 25 - but the correct amount is the 5.

Reason 2:

I've found a second case where the example is even worse, though it may be a much more rarely used example. If you use non-deductible vat, and use a deferral template, specifically in a GL Journal, the report will print zero in both base amounts and amount.

• The same example works fine on a Purchase Invoice - except of course for the wrong amount being used, ref: Example 1.

Suggestion 1: Make the amount column take the correct amount

Suggestion 2: Rename current 'Sales VAT' column to 'Base Sales VAT', and create another column for 'Calculated Sales VAT' - duplicate for purchase side. This will give the opportunity to follow

This suggestion could quite easily be extended for it to be a new VAT report, that is activated automatically when non-deductible VAT module is activated in VAT Setup.

1. If you DON'T have NDV, run the usual VAT Reconciliation report
2. If you DO have NDV, run the new adjusted VAT reconciliation report

I hope this suggestion get's some traction as it is quite a critical missing component in Denmark, if you use the non Non-deductible VAT module - which I'm otherwise very happy with.