Tax return (VAT report)¶
Companies with a registered VAT number are required to submit a tax return monthly or quarterly, depending on their turnover and the applicable regulatory requirements. A tax return - or VAT report - provides the tax authorities with information about the taxable transactions made by the company. The output tax is charged on the sale of goods and services, while the input tax refers to the tax included in the price of purchased goods or services. Based on these values, the company can calculate the tax amount they must pay or be refunded.
Configuration¶
Tax return periodicity¶
The configuration of the tax return periodicity allows Odoo to compute tax returns correctly and automatically send reminders to make sure that deadlines are met.
To do so, go to , navigate to the Tax Return Periodicity section, and update the following fields, if needed:
Periodicity: Define whether the tax return is submitted monthly or quarterly.
Reminder: Define when Odoo should send reminders to submit the tax return.
Journal: Update the journal where the tax return is recorded, if needed.
Note
This information is usually configured during the app’s initial setup.
Tax grids¶
Odoo generates tax reports based on the Tax Grids settings configured for each tax. All recorded transactions must apply the correct tax rates to ensure accurate reporting.
Tax Grids are displayed in the Journal Items tab of any invoice or bill.
To configure tax grids for taxes, go to , open the relevant tax, and edit the tax settings and the tax grids used to record invoices or refunds.
Note
Taxes and reports are usually pre-configured according to the country selected for the company.
Tax returns journal¶
On the Accounting dashboard, complete the following actions displayed in the Tax Returns journal before creating tax returns:
Set Company Data: Configure the company details.
Set Periods: In the Accounting Periods window, fill in the Opening date, Fiscal Year End, and update the Periodicity if needed.
Review Chart of Accounts
Close a tax period¶
Tax return lock date¶
Setting a tax lock date prevents changes that could impact VAT-related journal entries. Locking the period before processing the Closing Journal Entry helps ensure the accuracy of the final report and reduces the risk of tax errors.
To view or edit the current Lock Tax Return date, go to .
Note
Any new transaction whose accounting date is before the Lock Tax Return date has its tax values moved to the next open tax period, preventing any changes to a report after its period is closed.
Tax return¶
On the Accounting Dashboard, the Tax Returns journal displays automatic reminders to avoid missing important tasks and deadlines.
After completing all configurations and posting all tax-related transactions for the reporting period, click Tax Returns on the Tax Returns journal from the Accounting dashboard. Alternatively, go to .
The Tax Return view displays a chronological list of all pending tax returns (VAT report) and advance payments (based on the fiscal localization). Each item on the list includes:
A period (month or quarter).
A deadline date.
The related company and branch(es), if applicable.
Action steps, such as Review, Submit, and Pay, which turn green when completed.
Action buttons: These are displayed as primary (purple) and secondary (grey) buttons to indicate their priority.
A (vertical ellipsis) menu for additional options.
Note
Before the tax return is reviewed, the number of Pending or Passed tax validation checks is displayed in red or green, respectively.
If the Deadline date has passed, it appears in red.
Tip
To export all tax returns from the selected period, click the (gear) icon, then click Export all to download the tax returns XLSX.
All status changes are logged in the chatter. Click on any tax return or advance payment line to view the chatter.
VAT report¶
Each pending tax return (VAT report) follows these steps: review, submit, and pay.
To access a tax return, click the local VAT report button (e.g., VAT Return (BE) or Tax Report (US), depending on the fiscal localization) or the Generic Tax report button on the tax return line in the Tax Return view.
Tip
Click PDF or XLSX to generate a PDF or XLSX file, respectively.
Click the (gear) icon and Copy to Documents to save the report to the Documents app. Select the format to Export to, the Documents Name, the Folder to store it in, and add any Tags. Then click Export.
To create a new return, click New, select the relevant Return Type, and fill in the required Dates. Then, click Generate Return. The following returns can be generated:
Annual Closing: Corporate Tax
VAT (return)
VAT Listing (Belgium-specific)
EC Sales List (EU-specific)
Advance Payment (Belgium-specific)
Intrastat (EU-specific)
Review¶
To start the review of a tax return, click Review on the relevant tax return line:
If all automatic tax validation checks have passed, the tax return has completed the Review step, and the tax return can be submitted. If needed, click See Checks to view all checks.
If any automatic tax validation checks are pending, the Tax Checks view displays the following, depending on the fiscal localization:
Bank Matching: This check is used to identify any missing bills; it is optional for VAT reports.
Bill attachments: Bills must have attached documents as proof in case of an audit.
Company data: Missing information (e.g., VAT number or country) can lead to errors in tax reports or exemptions.
Draft entries: Any draft invoices and bills within the corresponding period must be reviewed and posted, or assigned a different accounting date.
No negative amount in VAT report: Some countries only allow positive values in tax returns, as a negative amount could indicate misconfigurations.
Taxes and countries matching: Taxes applied on invoices and bills must match the customer’s country.
Each check card is either marked with a (pass) or (fail). Once a check is passed, the line turns green. If a check fails, there are two options:
Click on the failed check’s card to fix the issue.
Click Validate to pass the check without fixing the issue.
The following actions can be performed on each check card:
Add a check approver: Hover over the relevant check card and click the (user-plus) icon to add the approver who confirms the review. The check approver’s name is then displayed on the check card.
Add notes and a note approver: Click the (pencil-square) icon to access the check form view, where notes and an approver’s name can be added. The notes approver’s name is then displayed on the check card.
Manage activities: Click the (clock) icon to schedule a new activity or the (check) icon to view planned activities.
Once all checks have passed, click Review.
Tip
To view all the validation checks for a tax return, click the (vertical ellipsis) icon on the corresponding tax return line in the Tax Return view and select View Checks.
Once a tax report has been reviewed but not yet submitted, additional invoices or bills from that period can still be posted and included in the closing entry. To do so, click the (vertical ellipsis) icon on the relevant tax return line in the Tax return view and select Reset to review checks before submitting the tax return.
Submit¶
Once a tax return has completed the Review step, proceed as follows:
In the Tax Return view, click the local VAT report button (e.g., VAT Return (BE) or Tax Report (US), depending on the fiscal localization) or the Generic Tax report button on the relevant tax return line to preview the tax return report.
Once the tax return report has been verified, go back to the Tax Return view and click Submit.
In the pop-up window, follow the local Instructions, and click Mark as Submitted or Mark Paid.
On submitting the tax return, the Lock Tax Return date is automatically updated, and the closing journal entry is posted in the Tax Returns journal.
The submitted tax return contains all the values tax authorities need, and the amount to be paid or refunded.
Tip
To display all posted closing journal entries, click the Tax Returns journal in the Accounting dashboard.
To display the tax return entry posted, click the (vertical ellipsis) icon and select View Entry. The following options are available if needed:
Reverse Entry
Reset to Draft: The Lock Tax Return date must be manually removed using a lock date exception to reset a tax return entry to draft.
Note
If the Lock Tax Return date is not locked before submitting the tax return, the fiscal period is automatically locked on the same date as the accounting date of the closing journal entry. While this feature helps prevent certain fiscal errors, it is recommended to set the Lock Tax Return date manually beforehand.
Important
After the tax report for a period has been posted, that period is locked to prevent new VAT-related journal entries from being created. Corrections to customer invoices or vendor bills must be recorded in the following period.
Pay¶
Once a tax return is submitted, a Payment window appears if a tax payment is required. It displays all necessary payment details to complete the transaction, including a QR code for the banking app, if available for the country’s fiscal localization package. There are two options:
Click Mark Paid after completing the payment: the corresponding tax return line disappears from the Tax Return view.
Click Pay Later: the corresponding tax return line remains visible in the Tax Return view, indicating the amount due. Click the (paperclip) icon to access the PDF and XLSX files of the submitted tax return.
Advance tax payments¶
Note
Advance tax payments are specific to local fiscal localizations and the requirements of certain countries’ tax systems.
In the Tax Return view, click Pay on the relevant advance tax payment line that needs to be processed.
In the Advance Payment window, follow the local recommendations, fill in the required local fields, and use the provided payment details to finalize the transaction. Two options are available:
Click Mark Paid once the payment is processed: The corresponding advance tax payment line disappears from the Tax Return view.
Click Pay Later: The corresponding advance tax payment line remains visible in the Tax Return view.
Tip
To mark a tax payment that has already been completed, click the (vertical ellipsis) icon and select Mark as Completed.