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swcrltd
June 30, 2021
Question

Payment received from client, but they have not paid any VAT how can i match the payment but leave the Applications for Payment open with remaining VAT

  • June 30, 2021
  • 1 reply
  • 0 views

Hi Everyone, 

 

We have received a payment from a Client for 2 Applications for Payments (estimates) sent before the VAT reverse charge came into play on 1st March 2021. 

 

The payment they have made is not including VAT which are owed on the Applications - we are trying to get the VAT to be paid but until then we need to clear the funds that have been paid. 

 

I need to make the Application into an Invoice - no problem - but is there a way to show the VAT hasn't been paid by the client and that the remaining amount due is to include the whole VAT amount ?! 

 

For example: 

Application is worth £10K

VAT is £2K

Payment received is £8K

 

Therefore client owe £2K on Application itself PLUS £2K in VAT

 

I'm hoping this makes some sense to someone - would be grateful for any assistance or suggestions. 

1 reply

JasroV
JasroV
June 30, 2021

Welcome to the Community space, @swcrltd.

 

I appreciate you for sharing the details of your concern with us. The option to show the VAT amount that hasn't been paid in an invoice is impossible in QuickBooks Online (QBO). You can only include the VAT on the total amount of the invoice.

 

As a way around, I propose working with your accountant. They can advise you on the best course of action to deal with this without messing up your records. If you don't have one, you can visit our ProAdvisor page and look for one from there.

 

Moving forward, please ensure to include the VAT in your invoice to avoid issues when filing your taxes. Once everything is settled, you might want to utilize this link that can guide you in filing your returns seamlessly: Submit a VAT return in QuickBooks Online.

 

In case you have other follow-up questions about invoices or recording VAT, you're always welcome to get back to me. Our door is always open to help and keep you up in running. Keep safe and have a good one! 

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