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Ian Harvey
June 11, 2023
Question

VAT100 Reports

  • June 11, 2023
  • 2 replies
  • 0 views

Hi

A lot of my customers deduct expenses from their payments to me.  I can easily account for these deductions in my invoices or from sales receipts but when I prepare my VAT returns, the VAT 100 report allocates these deductions to my Output tax section and not the Input Tax section.  How do I resolve this anomaly.

Many thanks

Ian

2 replies

JessT
JessT
June 11, 2023

Thank you for posting about how your VAT is reported, Ian. Let me help you about it.

 

Input VAT is drawn from your cost transactions, while Output VAT is taken from your sales transactions. This is why your VAT on invoices and sales receipts is reported as an output VAT.

 

By the way, the product tag in your question is QuickBooks Desktop. I think you know it's no longer supported, so let me introduce our QuickBooks Online products in case you want to switch. You can contact our QBO Support about moving your data.

 

  1. Click Help and choose the Search tab.
  2. Click Contact Us at the bottom.
  3. Enter a sentence or two about moving your data to QBO and click Continue.
  4. Select Chat.

 

Let me know if you have other questions about your VAT.

I
Ian HarveyAuthor
June 11, 2023

Thank you Jess T.

Is there anyway of categorising these transactions differently so that the Output reports stay clear of input activity.

Thanks for the note about "Online", I already run two companies online and will move others over in due course.

 

Cheers

R
RoseJillB
June 11, 2023

Thanks for getting back, Ian.

 

My colleague is correct regarding the definition he added about Input and Output VAT. Since you deducted the expenses directly from your sales receipts or invoices, this has been added to your Output VAT which is a VAT taken from your sales transactions.

 

To correct these taxes, I’d recommend utilizing a Journal Entry (JE). This method will allow you to transfer money from one account to another. Here’s how:

 

  1. Go to the Company menu and chose Make General Journal Entries.
  2. Fill out the fields and ensure your debits and credits are equal.
  3. Then, select Save or Save & Close.

 

I also added this article for more details: Create a journal entry in QuickBooks Desktop for Windows.

 

Furthermore, please consider checking with your accountant to guide you in choosing the correct accounts and ensure your book stays accurate.

 

If you have any other follow-up questions about your taxes or reports, let me know by adding a comment below. I'm more than happy to help. Keep safe!

paul72
paul72
June 12, 2023

Hi @Ian Harvey 

 

If you are receiving Self-Bills, the best way is to replicate these as Invoices (or Sale Receipts) in QBO.  No need to actually send them.  This will ensure that the VAT Returns have the correct figures in the correct places.

Offset the payments as a Contra either by way of a dummy bank account or a Journal (there are several threads on here showing how to do that).

 

Hope this helps.

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