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AJonsson
July 5, 2021
Solved

VAT on transactions already add into Quickbook

  • July 5, 2021
  • 1 reply
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I just registered for VAT but have already put some transaction onto the system for the month my VAT registration is valid from. How can I amend it so it takes into account when calculating what I need to pay? 

Best answer by GeorgiaC

I had already added some transactions to this month before registering for VAT. Therefore those transaction do not include VAT on the system. Maybe I would be better off to cancel all the transaction I've made and do it all over again


Hi AJonsson, if these transactions need to be included in your VAT return, you can simply open each transaction and change the 'Amounts are' from 'No VAT' to inclusive or exclusive of VAT - you'll then see the VAT column appear on the item details line where you can select the relevant code. 🙂

1 reply

S
SarahannC
July 5, 2021

Hello there, @AJonsson.

 

Just to make sure I got it right, would you like to amend the VAT you've entered from Taxes page? If so, we can set up an account for VAT adjustment and use the correct account type when adjusting VAT.

 

These are the steps that you can follow:

 

  1. Go to Accounting on the left panel.
  2. Within the Chart of Accounts tab, select New at the top right.
  3. Once you get there, select Income or Expense in the Account Type depending on the need of the VAT. (If you need to decrease your VAT due, set up an income account. If you need to increase your VAT due, set up an expense account).
  4. In the Detail Type field, use Sales of Product Income for an income account and Taxes paid for an expense account.
  5. Name your adjustment account. 
  6. Then, Save and Close.

 

Then, add an adjustment. Here's how:

 

  1. Go to Taxes on the left panel.
  2. Find the tax period you need to adjust, and then select View return.
  3. Select Add an adjustment.
  4. Select the Reason for the adjustment.
  5. Select the Account for adjusting VAT. Remember to choose an expense account if you need to increase the tax due and income account if you need to decrease the tax due.
  6. Enter the Adjustment amount, and then select Add.

 

For more resources, check these articles I've added below. Each of them provides information about VAT in QuickBooks Online:

 

 

Feel free to utilize the Reply button below if you have other concerns or questions. I'd be happy to help. Take care and have a good one.

A
AJonssonAuthor
July 6, 2021

Hi,

Just to clarify it a bit more.

 

I've already added some transaction to the month of April. Unfortunately I didn't tell the system I was VAT registered as of from that month. So part of the transaction are not with VAT so those items are not reported on my VAT return.

Can I fix this or do I need to cancel all the transaction and add them in again?

Quickbook is connected to my bank account so I'm not sure how that will affect it. Does the system know it need to update the transactions I deleted, if I need to delete that is.

 

Thanks

A
Ashleigh1
July 6, 2021

Hello Ajonsson, 

 

Welcome to the Community page, 

 

All you need to do is add the vat to the transactions as long as the start month of the vat is correct the transactions will be added to the vat return for you. 

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