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Lorraine00
April 18, 2022
Question

I have created VAT CTRL journals and now realise they aren't included in the VAT return. Is there a button to tick like sage to do this?

  • April 18, 2022
  • 2 replies
  • 0 views

I have created  VAT CTRL journals and now realise they aren't included in the VAT return. Is there a button to tick like sage to do this?

Unfortunately I have 3 years to go back on for underpaid VAT. (Groan) They can just be 3 amounts/journals for the 3 years but I don't know how to do this.

Help please..

Lorraine

2 replies

J
JamaicaA
April 18, 2022

Congratulations on making your first post here, @Lorraine00. I’ll provide some information to help resolve your VAT control concern.

 

When you turn on Taxes in QuickBooks, the VAT control account is created automatically. Please also know that any transactions, such as journals that are posted to VAT control without a VAT code will not be included in the VAT return.

 

When you post a transaction with a VAT code in QuickBooks Online, the amount in your VAT control account is posted to the VAT suspense account, where it is cleared by recording a payment or refund against the VAT return.

 

You can read this article to learn more about the VAT control and VAT suspense: What is the difference between VAT control and VAT suspense?

 

I'd also recommend checking out the resources specific to your location to learn more about any VAT-related tasks in QBO:

 

 

If there's anything else that I can help you with apart from VAT, let me know by leaving any comments. I'll be here to lend a hand.

L
Lorraine00Author
April 18, 2022

Thanks. I do understand the correct use of the VAT control in this way, but how can I have the whole figure (100% and not 20%) added to the VAT return by journal now?

M
MirriamM
April 18, 2022

Hello there, Lorraine00. 

 

If you're creating a Journal entry, you'll need to put the VAT in the paired account. But since every business has a different structure, and it typically goes to the posting accounts used for transactions, for this reason, I recommend reaching out to your accountant to help determine the different accounts to be used.

 

Additionally, you'll want to edit the VAT settings, codes, and rates to manage them. For more information, check out the Edit your VAT settings, codes, and rates section of this article: Set up and edit VAT settings, codes and rates.

 

If you need additional assistance, please let me know. I’ll be right here to help. Have a great day!

paul72
paul72
April 22, 2022

Hi @Lorraine00 

 

In order to post to the VAT100, you need to specify a VAT code on the journal lines.

Are you simply posting the amount(s) to VAT Control account?

 

In order to create a 100% VAT journal, you would need two lines:

(1) £1000 with S20 VAT code =  £200 VAT

(2)  minus £1000 with Z0 = £0 VAT

creates a £200 VAT only journal.

 

A possible alternative to a manual journal like this might be to use an Adjustment direct on the VAT100.  I think this would simply create a background journal but it isn't something I've used so can't give you much help with it.

 

Hope this helps.

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