Question

My company is paid by Patreon exclusively, they pay all VAT on our behalf, can you tell me how to prepare my VAT return in QB without it raising red flags?

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QuickBooks Online

Hello, steveneaves, welcome and thanks for posting on the Community, for the question you are asking we would advise that you reach out and speak to an accountant on how best to record this in your Quickbooks account.

S

steveneavesAuthor

Hi thanks for response, yes I have a good accountant, but even they arent sure how to do this in Quickbooks. The issue is that the HMRC are aware that 'Marketplace' websites like Patreon are responsible for paying all users VAT on their behalf (they collect it and turn it) - in fact the UK Government force them to do so, the problem with Quickbooks is there is no way of stating that all VAT is being paid by a third party 'Marketplace' website such as Patreon, so you end up having a VAT return that looks wrong as you are never paying VAT only reclaiming it - I currently have to pay a VAT expert to do my VAT return outside of QB, so that they can simply state that our VAT is being paid by a third party (Patreon) and its very expensive, would much rather have the ability to do this via Quickbooks - thanks Steve

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GeorgiaC

Hi Steve, there isn't a way to declare that any VAT was paid for via a third-party site such as Patreon in QuickBooks. If you're using QuickBooks to prepare a VAT return, you would enter all transactions for the period with the applicable VAT code applied.

A VAT adjustment can be entered against boxes on the return, to reduce or increase the amount due to HMRC or owed to you, and a memo can be entered on this (though this is not visible to HMRC).

As this isn't a scenario that we can specifically advise on, we'd recommend contacting your accountant or tax professional again for best advice. Thanks 🙂

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