VAT: what you charged and what you paid

Each month you must declare the VAT you charged customers (output VAT) and the VAT you paid suppliers (input VAT). OLY ERP collects both automatically from your invoices. This page shows where to find the figures.

Before you start

• Your OLY ERP consultant sets up the VAT accounts and the tax templates during onboarding. Sales invoices post output VAT to one account, purchase invoices post input VAT to another.
• All sales and purchase invoices for the month must be entered and submitted.
• You need the Accounts User or Accounts Manager role.

How VAT gets into the books

• When Hana submits a Sales Invoice with the VAT template, OLY ERP adds VAT at 15% and posts it to the output VAT account. Example: goods 10,000 ETB + VAT 1,500 ETB.
• When Dawit or Meron submits a Purchase Invoice with the VAT template, the VAT is posted to the input VAT account.
• Credit Notes and Debit Notes reduce the VAT in the same way.

Steps

1. Check the VAT account totals

1. Open the General Ledger report from the Accounting workspace.
2. Set From Date and To Date to the VAT period your accountant uses, for example 2026-09-01 to 2026-09-30.
3. In Account, select the output VAT account.
4. Read the total at the bottom. The credit total is the VAT you charged.
5. Change the Account to the input VAT account. The debit total is the VAT you paid.

2. Get the invoice lists

1. Open the Sales Register report with the same dates. It lists each sales invoice with customer, TIN (if set up), net amount and VAT.
2. Open the Purchase Register report with the same dates for supplier invoices.
3. Export both to Excel from the menu (three dots) > Export.
4. Check that the VAT totals in the registers equal the totals in the General Ledger.

3. File the return

Use these figures to fill in your VAT declaration. Your business files the return and pays the tax authority as usual. OLY ERP gives you the numbers; it does not file the return for you.

Good to know

• If the registers and the General Ledger do not agree, look for a journal entry posted directly to a VAT account. Ask your accountant.
• Supplier invoices without a valid VAT receipt should not carry input VAT. Check before you submit the purchase invoice.
• Withholding tax is separate from VAT. It is deducted at the current legal rate, set up by your consultant.
• Keep the exported files with your filed return.

Related

• Create a sales invoice with VAT
• Record a supplier invoice (with VAT and withholding)
• Month-end checklist
• Financial reports: P&L, balance sheet, trial balance