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Lee100
September 30, 2022
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VAT 100 and equity payments

  • September 30, 2022
  • 1 reply
  • 0 views

I've just started using Quickbooks and need to submit my first VAT 100 return. Not much has gone on in the account, but I've paid in some funds as initial owner's equity. I've set up myself as a supplier and an Owner's Equity account to categorise the payments.

 

These payments are unexpectedly showing up in the VAT 100 under 'Box 6 Net value of sales'. They're not sales. I know bookkeeping is deliberately difficult to understand, but should owner's equity show up on the VAT 100 return? If not, do I have to manually remove it or re-categorise it in Quickbooks?

Best answer by paul72

Hi @Lee100 

 

I'm not sure book-keeping was designed to be deliberately difficult but it is sometimes an amusing side-effect :smileylol:

 

You're right - these amounts should not be on the VAT Return.

You've probably entered with VAT Code Z=0% or Exempt?

Use VAT Code NOVAT & they'll be ignored for VAT purposes.

 

Hope this helps.

1 reply

paul72
paul72Answer
September 30, 2022

Hi @Lee100 

 

I'm not sure book-keeping was designed to be deliberately difficult but it is sometimes an amusing side-effect :smileylol:

 

You're right - these amounts should not be on the VAT Return.

You've probably entered with VAT Code Z=0% or Exempt?

Use VAT Code NOVAT & they'll be ignored for VAT purposes.

 

Hope this helps.

    L
    Lee100Author
    September 30, 2022

    Bang on!

    It's kinda obvious when you're shown, and a newbie error.

    All good now though, thanks.

    K
    Kurt_M
    September 30, 2022

    Hello there, @Lee100.

     

    I'm glad that you're able to get the information that you need here in the Community. If you have any additional QuickBooks-related concerns, know that you can always post here again. Rest assured, I've got you back and I'll be happy to help you out again.

     

    Take care, and enjoy your weekend!

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