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GJE
Jan 27, 2021 8:19 AM UTC
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How to Switch from Cash to standard accounting for VAT?

How to Switch from Cash to standard accounting for VAT?  Anyone know where to find the QB guide for this?

Ashleigh1Answer
Jan 27, 2021 8:38 AM UTC

Hello GJE, 

 

Welcome to the Community page, 

 

Here are the steps you need to take to move from cash to accrual accounting for vat 

 

1. Go to taxes

2. Edit VAT

3. Edit settings 

4. Press standard

5. Save 

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17 replies

Ashleigh1Answer
Jan 27, 2021 8:38 AM UTC

Hello GJE, 

 

Welcome to the Community page, 

 

Here are the steps you need to take to move from cash to accrual accounting for vat 

 

1. Go to taxes

2. Edit VAT

3. Edit settings 

4. Press standard

5. Save 

GJEAuthor
Jan 27, 2021 10:04 AM UTC

Thank you Ashleigh1.   I thought that was all you had to do, but I am trying to find out what happens to all the unpaid Sales invoices and purchase invoices if we change from say 1st January 2021.  I imagine that only new sales invoices and new purchase invoices dated 1st January and later would be included in the next VAT return.  But what about the VAT on the old sales invoices that get paid after 1st January?  How does the VAT get accounted for?

 

Thanks in anticipation!

GeorgiaC
Jan 27, 2021 1:00 PM UTC

Hi GJE, 

 

Thanks for getting back to us, when setting the date for the new accounting scheme (within the tax settings) we recommend setting this back to the first transaction entered on QuickBooks, though you can enter any date, e.g. 1/01/1999, if you're needing to capture all of those in the current open return. 🙂

 

Get back to us below if you have any further queries! 

 

Styles1
Dec 7, 2021 2:08 PM UTC

I've also just switched to accrual accounting for VAT but the unpaid invoices have not pulled across. I tried to change the date but it keeps defaulting to 1/12/21 which is the date we switched.  Any help appreciated.

DivinaMercy_N
DivinaMercy_N
Dec 7, 2021 3:48 PM UTC

I want to ensure you'll be able to get the data you need, @Styles1. 

 

In QuickBooks Online (QBO), when switching to the Accrual accounting method for VAT, you'll have to enter the start date for the new scheme as the date of the first recorded VAT return in QBO. By doing so, you can ensure that the program doesn't miss anything. These also will show as open transactions on the prepare return page. 

 

For more information about updating your VAT settings, please visit this article: Set up and edit VAT settings, codes and rates. It also, includes steps to guide you in submitting a VAT return.

 

Also, to easily review the details of your VAT return, you can run the VAT Summary Report. This shows an overview of details for each box on your return. 

 

Feel free to get back here if there's anything else you need about switching accounting methods for your VAT. I'll be always around to assist you more. Take care. 

Styles1
Jan 6, 2022 11:56 AM UTC

Hi - thank you Davina for the advice.  Where is the date to be entered that needs to go back to the first VAT return. In the section where I switched to accrual accounting the date keeps defaulting to 1 Dec 21 regardless of the date I put in.  Are you referring to the date on the VAT100 report or in the tax settings?

 

Regards

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