Skip to main content
B
bmweb
August 28, 2022
Question

How can I clear VAT from old invoices that have been added to current VAT term?

  • August 28, 2022
  • 1 reply
  • 0 views

I am using quickbooks due to the move to digital vat returns. I am a sole trader on a fixed VAT scheme. 

 

I created my quick books account and did my invoices/expenses for Apr,May,Jun 22 and submitted them all correctly. 

Then I decided I should add in my old invoices and expenses for accounting year 21-22. After doing so, despite the invoice dates being correct and within the 21-22 financial year, my VAT report is now showing as me owing thousands for the upcoming VAT period. It looks like it is charging the VAT for all of the invoices I added for last year for the next VAT return. 

How can I rectify this?

1 reply

B
bmwebAuthor
August 28, 2022

To be clear, these are VAT exceptions. When I was creating the invoices, I did get a warning about VAT being brought into the current period if the date of the invoice affected a previously submitted VAT return. But as I only ever submitted one VAT return for 22-23 financial year, and all the invoices I have added are for 21-22 financial year, I don't understand why these have all been added? 

M
Mark_R
August 28, 2022

It's good to see you here in the Community, @bmweb.

 

I've come to help clear the VAT rates from the old invoices that have been added to the current VAT return.

 

Please know that if you've made changes to the VAT rates from the old invoices, it'll affect your current VAT return. That's why it adds up to your upcoming VAT period.

 

However, you can clear this up by going through each of the invoices and changing the VAT rate to No VAT or Exempt. To do so, you can run the VAT Detail report to show all the invoices affected. Here's how:

 

  1. Click Reports from the left menu.
  2. Search for the VAT Detail report.
  3. Select the date range of the report. You'll see the list of transactions with the corresponding VAT rate.
  4. Find and open the affected invoices.
  5. On the Invoice page, select Exempt from the VAT column or No VAT from the Amounts are drop-down.
  6. Save the changes.

 

In case you encounter a prompt that still affects your current VAT period, I suggest seeking help from your accountant. This way, they can guide you on the proper way how to clear it.

 

These articles will help guide you more about common VAT codes in QuickBooks:

 

 

The Community forum is always open to help you again if you have further questions about VAT. Have a good one.

Terms & ConditionsAccessibility statement