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johnpaulcain
January 16, 2020
Solved

Recording a VAT payment against a previous VAT return

  • January 16, 2020
  • 1 reply
  • 0 views

I have just started to use QuickBooks Online.

 

I am adding all the information from the bank statements I have imported.

 

I cant allocate an older VAT payment, I get the error "You have either selected a tax liability account on a transaction where it's not allowed, or haven't specified a tax rate along with it."

 

I haven't entered any old VAT return info to pay it against or record payment.

 

Any help much appreciated.!

Best answer by payment after leaving

Hi johnpaulcain

 

What account are you choosing when attempting to allocate the transaction? If you are accounting for a historic VAT payment that doesn't relate to any submissions you have made using the VAT centre you will have to create a one off expense account and from then on any payments relating to submissions made from within the VAT centre will be recorded within the taxes centre and then a match will be found with the corresponding amount in the banking section.

1 reply

P
payment after leavingAnswer
January 16, 2020

Hi johnpaulcain

 

What account are you choosing when attempting to allocate the transaction? If you are accounting for a historic VAT payment that doesn't relate to any submissions you have made using the VAT centre you will have to create a one off expense account and from then on any payments relating to submissions made from within the VAT centre will be recorded within the taxes centre and then a match will be found with the corresponding amount in the banking section.

J
johnpaulcainAuthor
January 16, 2020

To be honest I am confused.

 

I created a new expense account called VAT - Previous Payments. This enabled me to allocate the bank payment.

 

But it screws up the accounts reporting. The VAT Control Account now shows an opening balance against all VAT you received from old invoices in previous VAT periods, this then shows as a debt on all the accounts reports.

 

So this does not seem to be the correct way to deal with it.

P
payment after leaving
January 16, 2020


Hi johnpaulcain

 

Does the payment you have just allocated correspond to any of the VAT period you have marked as filed/submitted in the Taxes section?

If you enter historic transactions /they do not relate to any periods marked as filed/submitted from the taxes page they will populate in the VAT control account.

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