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E
evz-hexvallei-co
October 4, 2024
Question

Is is possible to change the VAT of a billiable account transaction to input (Purchase) VAT instead of Output (SALES) VAT.

  • October 4, 2024
  • 1 reply
  • 0 views
My cleints sell fresh Produce at Zero Rated Sales. The Company the handle the sales charge a commsion and pay the Nett amount to my client.  The Cost deducted for the Sales price has VAT on it and should be handled as Input (Purchase VAT).  If I create a product that is linked to a expense account I can book the costs as a negative on the invoice which handles the costs correctly. The VAT however now shows as a Negative Output VAT in the VAT form which is wrong. I need the VAT on the cost to show as INPUT VAT.

1 reply

I
Ivan_G
October 4, 2024

I'm glad to assist you with your concern on why the VAT is as an output instead of input data, evz. I'll provide clarifications and alternatives below.

 

The commission item is treated as an output VAT because of how it's entered in QuickBooks. If the commission is added to the invoice, it will show as an output transaction regardless if it's recorded as a negative amount.

 

If you need to enter the commission as input VAT, it's best to record it separately as an expense transaction. After that, its amount will reflect as input data on your VAT Returns.

 

I've also added these resources you can review, which will be handy in getting a complete view of the total VAT you owe and pulling up a report that shows transactions included in each box of the VAT return:

 

 

Drop by again on this thread should you have follow-up questions regarding your VAT entries or other transactions in QuickBooks. The Community team always has your back.

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