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JackS
JackS
August 30, 2023
Question

All things VAT | Post Your Question Below

  • August 30, 2023
  • 12 replies
  • 0 views

 

This article aims to help you with all things VAT. It may be that you need help recording VAT payments, submitting a VAT return or you need a hand with setting up VAT. Post your questions below and we'll have an expert get back to you.

 

 

 

 

 

 

 

    12 replies

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    A
    A K1
    October 31, 2024

    Hi,

    We moved over from Sage to Quickbooks online last week. How do you record a VAT refund? The system does not allow me to match it against the VAT Control account. Our previous return was done in Sage, hence I can`t follow the steps mentioned in the thread to find the earlier return and match refund. We have no earlier return at all in the VAT window. Thank you.

    R
    RogelioL
    November 1, 2024

    Thank you for reaching out, and welcome to QuickBooks Online. I can see the importance of getting your VAT refund recorded accurately, especially after transitioning from Sage. I'd be glad to guide you through the steps to enter your VAT refund in QuickBooks.


    Since your previous VAT return was filed in Sage, you’ll want to record this directly as a bank deposit. Here’s how:

     

    1. Click the +New icon, then select Bank Deposit.
    2. Choose an Account where you want to deposit the refund.
    3. From the Received From, choose who sends the refund (Example: HMRC).
      Note: If you haven't created an HMRC, click the Received From dropdown, then select + Add New. 
    4. In the Account field, select VAT Control.
    5. Complete any other necessary fields, then click Save and New.

     

    This will add your VAT refund without needing to access the VAT tab, which aligns well since your previous returns are on Sage.

     

    For ongoing VAT tasks, QuickBooks offers a comprehensive guide on managing VAT returns that might be helpful as you continue using the system: File your VAT return and record VAT payments in QuickBooks Online.

     

    Additionally, if you need to assign VAT categories to products, you can follow this guide: Add a VAT category to products and services in QuickBooks Online.

     

    If there’s anything more you need as you adjust to QuickBooks, please don’t hesitate to reach out. I’m here to help make your transition as smooth as possible.

    M
    MCooney
    January 20, 2025

    Can someone clarify this for me…We use QBO Advanced

    We run VAT on a Cash Basis

    We are filing the VAT return for November and December.

    A September dated customer invoice was paid in November and discounted. It is showing on both the Exception Report and also in the Sales VAT report (ie twice). Is this an error?

    I contacted QBO support and they said it’s because it’s a filed transaction (which it isn’t) and wanted to talk me through undoing the Sep/Oct Return? Surely this isn’t correct?  I am of the understanding exceptions only occur for a transaction changed that has been filed in a previous period.

     

     

    C
    CharleneMaeF
    January 20, 2025

    Hi, MCooney.

     

    Yes, you're correct. Since the invoice for September was paid in November, it is the reason why it shows in the VAT Exception report.

     

    To avoid messing your record, I recommend to leave it as it is since your VAT is set up on a cash basis, the outstanding invoice from September was not included in your previously submitted return, as it had not been paid at that time. The invoice shows in the VAT Exception report due to a change made in the previously submitted period. Consequently, the tax amount related to that invoice was not included in your earlier filed return and is now reflected in your current return.

     

    For more details, please see this article: VAT exceptions and reports in QuickBooks Online.

     

    If you have any further questions or need assistance, please don't hesitate to reach out. We're always here to help.

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