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A
ashain7
February 22, 2025
Question

VAT return total amount is less than total claim amount

  • February 22, 2025
  • 1 reply
  • 0 views

Hi,
I am new to this forum and also new to VAT return filing.

 

The first quarter of VAT return filing went very well all ok and I manage to submit to HMRC.  

 

and the next quarter did the same way on all the expenses bills,

but I have an issue with the VAT return,
The total VAT claim for this quarter is £169, No VAT on sales, so its pretty simple only one expense.

After recording all the expenses QB online is showing only £15.67 are claimable.

1 reply

J
Jeff_S
February 22, 2025

The VAT claim amount depends on the transactions you have recorded in QuickBooks Online, @ashain7. Let me discuss it further.

 

You can run the VAT 100 report and click on the amount in box 7, which represents the net value of the purchases. You can then see the applicable VAT rate. The 'Paid in Purchases' section of the VAT window displays the total VAT incurred. Additionally, you can view the reclaimable amounts in the VAT report.

You can follow the steps below:

  1. Go to Reports. 
  2. Select View reports to show the list of reports.
  3. Select VAT 100 Report. 
  4. Choose a time period for the report.
  5. Select Run report.

 



Also, with proper VAT settings, you can generate insightful reports on VAT collected and paid, helping you analyze your business's financial health.

 

Additionally, filing VAT returns accurately and on time, along with properly recording your VAT payments, allows your business to maintain compliance and improve financial efficiency.

 

Correct VAT rates ensure that your financial reports are accurate and reflect your business's true financial health, @ashain7. For further assistance about VAT rates, click the reply button. I'm always here to help.

A
ashain7Author
February 23, 2025

Hi Jeff,

 

Thank you so much for your reply with all the instructions with the screen shot.

 

Very helpful.

 

Please I need one more help from you I don't understand the I ma getting paid on purchase is an negative figure, please see screen shot below.

C
ChristineJoieR
February 23, 2025

The negative figure arises from the difference between the Total VAT period and the Collected VAT on Sales, Ashain7. Let me explain this further to you.

 

In QuickBooks Online UK, a negative value on the "Paid on Purchases" line in the VAT return page typically indicates that the total VAT on purchases exceeds the total VAT on sales for that specific period.

 

There are several reasons why this could happen:

 

  • High Purchases: If you have made substantial purchases and incurred more VAT than the VAT collected from sales, this could result in a negative value.
  • Input VAT Exceeds Output VAT: If the VAT you paid to your suppliers (input VAT) is greater than the VAT you charged to your customers (output VAT), it would also lead to a negative value. This could be common in scenarios where you are stocking up inventory or have made significant capital purchases.
  • VAT Refunds or Credits: If you have received VAT refunds or adjustments from previous periods, or if you have claimed input tax credits, it can also result in a negative value in the "Paid on Purchases" section.
  • Errors in Data Entry: Double-check to ensure that all transactions, especially expenses and purchases, have been recorded correctly with the appropriate VAT rates. Errors in data entry might also lead to discrepancies in VAT calculations.

 

To ensure accuracy and compliance with VAT regulations, I also recommend consulting with a tax professional who can provide expert advice and guidance tailored to your situation.

 

For more guidance, refer to this page for filing your VAT returns: File your VAT return and record VAT payments in QuickBooks Online.

 

Furthermore, you'll want to add a VAT category to your product and services, here's how to manage them to let QBO calculate customer's tax accurately: Add a VAT category to products and services in QuickBooks Online.

 

Ensuring that the correct VAT rates are applied is crucial for maintaining the accuracy of your reports. I'm always here to assist you and provide the support you need to navigate VAT-related matters effectively. Please don't hesitate to click the Reply button.

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