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Nortical
Nortical
June 2, 2020
Question

EU tax shift

  • June 2, 2020
  • 1 reply
  • 0 views

I have created a tax group (for EU acquisitions which are B2B tax neutral purchases within the EU) for an EU client using the international version of QB sold for Denmark. The tax group imposes 2 input tax codes to an expense: 25% for input tax, then -25% input for the adjustment (tax shift). It looks correct on the transaction, but when I look at the VAT report, the adjustment is positive, not negative - so input tax is being doubled, not zeroed. This must be a coding issue within QBO.

1 reply

E
EmmaM
June 2, 2020

Hello Nortical 👋, Thanks for reaching to the Community with your question. Could you provide a screenshot of the set up the tax group and also how this is showing in the VAT report so we can look into this for you and provide a way to achieve what you want on the tax group.Thanks😊

Nortical
NorticalAuthor
June 2, 2020

The first screenshot shows the tax group (called 25% EU acquisition) working on the transaction

Nortical
NorticalAuthor
June 2, 2020

The second screenshot shows the adjustment being made - but it should be negative.

The tax group is made up of

  1. purchase tax 25% posting to line 7
  2. purchase tax -25% posting to line 8
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