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office-zingyzoo-
July 9, 2022
Question

When making adjustment to VAT return, will this "adjustment" reflect in the actual profit/loss balance? How to make adjustments which will be actualy reflected?

  • July 9, 2022
  • 1 reply
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I have quite difficult situation with multiple EU countries situation...in some cases I have to record TOTAL revenue (which is as income in books). Later, every quarter, I will manually add adjustments for VAT. But looking at details, it seems these adjustments are then not reflected in profit/loss. Sometimes 5-7% of the revenue is actual VAT, so it shouldnt be taken in the profit sheet. But I can not record it directly but do it quarterly via adjustments. How to handle this? Any advice?

1 reply

R
Rasa-LilaM
July 9, 2022

Thanks for visiting the Community @office-zingyzoo-. I'm here to assist you with your VAT concern.

 

When you change the amount for your VAT, QuickBooks creates a journal entry to reflect the adjustment. The transaction will appear in the Tax Detail report's related section.

 

Thus, I recommend that you consult with your accountant to keep your books in order. They can advise you on how to manage your taxes, particularly if you handle multiple European countries. Make sure to inform them that you want to show the VAT adjustment on the Profit and Loss report as well as directly record the actual revenue for your company.

 

This reference covers everything you need to know on how to: Create or delete a sales tax adjustment.

 

You can go over our self-help articles to learn more about how to handle all of your tax-related concerns. Then, click on the topic to view the complete information.


If you require additional assistance with your taxes or returns, press the Reply button and post your comments. I'll be right back in to help you out. Enjoy your weekend, @office-zingyzoo-.

 

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