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C
chris311
July 11, 2021
Question

I am struggling with the Tax Center. Where I am based I charge 7.7% VAT on sales but am on a flat rate (2%) VAT scheme with the tax authorities. How to handle this?

  • July 11, 2021
  • 2 replies
  • 0 views
Original commenter did not share additional details

2 replies

M
mv32
July 11, 2021

I can help you handle tax set up, @chris311.

 

To avoid confusion, I suggest consulting the tax authorities/agency. This way, you'll know what VAT scheme to choose and how you can handle it in QuickBooks Online (QBO).

 

When the tax agency determines the VAT scheme for your business, you'll want to set up your sales tax in QBO.

 

Once done, you can apply the sales taxes to transactions and sales forms.

 

For additional reference about Sales GST/VAT, read these articles:

 

 

I'll be right here to help if you need anything else you need assistance with setting up sales taxes, Chris. Just drop a reply below. Have a nice day!

C
chris311Author
July 11, 2021

Thanks @mv32 the issue I am facing is that we invoice 7.7% on sales and purchases (i.e. Sales Tax is set up in QBO accordingly). But when it comes to submitting VAT filings, we are invoiced VAT at a flat 2% rate on our half-year revenue and under this facilitated scheme, we also cannot deduct VAT paid on purchases. I have no idea how to build that into QBO or if the system is capable of handing this. The only way I figured is to make a manual adjustment in the tax filing, which then messes up our Cash account. 

I would be grateful if you could guide me through solutions. 

Thanks 

 

R
Ryan_M
July 11, 2021

Thank you for the prompt reply, @chris311. I'll point you in the right direction for support with your tax query in QuickBooks Online (QBO). 

 

It's best to consult a bookkeeper or an accountant on how to proceed at this point. This way, you can keep your books accurate, and file your taxes. 

 

I'll also share this article with you: Check how much sales tax you owe in QuickBooks Online. It has the steps on how you can run the Sales Tax Liability report in QBO.

 

Don't hesitate to post a reply if you have other questions about sales tax in QBO. I'll be sure to get back to you. Enjoy the rest of the day!

MJoy_D
MJoy_D
July 11, 2021

I can share some information on how to revert a filed VAT return, @chris311. 

 

I suggest checking out our QuickBooks Blog to learn what new updates and features we have. 

 

At this time, the option to revert a filed VAT form isn't available in QBO. To get this done, I'd recommend contacting our Customer Care Team. They can create a VAT unfiling request to successfully delete the incorrect VAT form. Make sure to provide the following information to them:

 

  • QuickBooks Online Company ID.
  • Which tax filing period you wish to unfile.

 

To learn more about the unfiling process, kindly refer to this article: How to unfile VAT/GST.

 

Here’s how to reach them:

 

  1. Go to the Help icon to connect to a support agent. 
  2. Enter Contact Support in the chatbox and click on the Contact Support team button. 
  3. Provide your account information and some insight about this concern.
  4. You'll now be provided options on how to connect to our Customer Support.

 

You can always get back to me if you have questions with VAT or other concerns by leaving a comment below. I'm always here to assist. Have a great rest of the day. 

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