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nomester
July 22, 2022
Question

Matching VAT Payment

  • July 22, 2022
  • 2 replies
  • 0 views

Hi, our accountant does our VAT return and our payment to HMRC comes out of our account as a direct debit, so I just want to match the transaction.  When I classify it as 'HM Revenue & Customs (VAT) Expense' from the drop down and then hit 'Add' I get the error "You have either selected a tax liability account on a transaction where it's not allowed, or haven't specified a tax rate along with it."

 

I have tried to set the VAT rate to No VAT and Exempt but nothing has worked.

 

Please see attached screenshot.

2 replies

paul72
paul72
July 22, 2022

Hi @nomester 

Sorry - can't see the screenshot for some reason.

I don't use Bank Matching but the VAT payment would usually go to/from VAT Suspense account with VAT blank or Code=NoVAT (as this code does not populate the VAT Return).

 

You may need to enter the VAT payment via Taxes>VAT in order for it to classify correctly.

You should then be able to match it automatically in the bank reconcile.

 

Hope this helps.

N
nomesterAuthor
July 22, 2022

I can't add a payment via the Taxes -> VAT screen, there's no option to add a payment??

A
Ashleigh1
July 22, 2022

Hello Nomester, Could you please send us a screenshot of what you see on your taxes page thanks. 

A
Ashleigh1
July 22, 2022

Hello Nomester, 

 

Welcome to the Community page, 

 

So you should be recording the VAT payment from the VAT screen rather than the banking page, then you will be able to match it in the banking screen. 

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