12.5% reduced rate is still selectable in the 'Manage Vat Rates' but does not show as an available option in the VAT drop down menu on banking screen. Why?

Question

I think perhaps a glitch on the system since the reduced rate ended in March 2022.
However, in cases where a hotel was booked and pre-paid but with a flexible option for cancellation up to the day of stay, the reduced vat rate still needs to be selectable in QB.

I have just received a refund from a hotel that was booked and paid for during the reduced rate period and so only 12.5% vat was charged. The refund has been made after the reduced rate period has ended however the hotel company have understandably refunded the same vat rate that I paid at.

Despite 12.5% TR being activated in 'Manage VAT Rates', it is for some inexplicable reason not in the drop down menu when selecting the VAT rate on a specific transaction in the banking window. A little bit infuriating if I'm honest!
Please help!

paul72 · Accepted Answer

I wish I could make it better, info1830.

Generally, after you've created value added tax code in the Taxes page, you'll have to make sure that all is set up correctly, You may have turned off the particular code that's why it's now showing in the banking page. To do this, follow the steps below:

Go to Taxes and select VAT (Take me there).
Select Edit VAT and then Edit Rates.
Select the gear icon above VAT rates and select Include inactive. This will show a list of all the codes that are currently turned off.
Use the toggle feature against the VAT code you want to turn on/off.

To manage the different angles of your VAT process, you can check out this article for more details: Set Up and Edit VAT Settings, Codes and Rates In QuickBooks Online.

However, if you all the set up have already been checked and yet it's still not showing, I suggest reaching out to our support team so they can double check what causing the issue and investigate further. They also have the tools to pull up your account to a secure environment. Here's how to reach them:

Click the (?) Help icon and enter Talk to a human (then type it again when prompted).
When asked by the bot, enter your concern
Select I still need a human, then proceed with Contact us or Get help from a human.
Choose either Chat or Callback.

Furthermore, QuickBooks usually tracks your payment due dates in one place. When it's time to file, you can always review what you owe. Learn from this article for more details: File Your VAT Return and Record Tax Payments In QuickBooks Online.

Please get back to us if you have any questions about your taxes. Always remember, we're here to help.

@MariaSoledadG wrote:
I wish I could make it better, info1830.

Generally, after you've created value added tax code in the Taxes page, you'll have to make sure that all is set up correctly, You may have turned off the particular code that's why it's now showing in the banking page. To do this, follow the steps below:

To clarify @MariaSoledadG , the VAT Code in question (12.5%TR) is not a manually created one - it is an original QBO code created to cover a temporary VAT rate here in the UK.

Applicable to hospitality, holiday accommodation & attractions it was in effect from 1 October 2021 to 31 March 2022.

In fairness, QBO does apply the date limits correctly (aside from the fact that it seems possible to use the code for 1st April).

The problem is that QBO is maybe too strict. Rather than just give a warning that the code is not valid for a date outside the above range, QBO will not allow the bill/expense to be saved at all & so will not allow any exceptions or special cases like that mentioned by @info1830 in the original post.

LollyNino_C · Answer

I'm happy to see you here in the Community, @info1830.

Let's attempt using a private window and set up your account again. This will help us identify if this is a browser issue.

Depending on your browser, here's how:

Google Chrome: Press CTRL + Shift + N
Mozilla Firefox: Press CTRL + Shift + P
Internet Explorer: Press CTRL + Shift + P
Safari: Press Command + Shift + N

Once done, create a dummy invoice to check if the registration number shows up. If it works fine, you can go back to your regular browser and clear your cache.

However, if the issue persists, I'd suggest reaching out to our Online Support so they can investigate and check this further using their tools.

Feel free to drop me a reply below if you have any other concerns. I'll be standing by to answer them for you. Have a good one.

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