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Community Explorer **

Submit VAT Report

Hi, All

 

I submit VAT report at the end of every month.

 

for Jan 2019 I has no vat collected because I didn't sell any services this month but I purchased so VAT amount was a negative amount.

 

for Feb  I sold well and purchased also VAT for Postive amount, Now I need to pay VAT amount after deducting the negative amount for the previous month and submit a new amount as net.

Thanks 

1 Comment
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QuickBooks Team

Re: Submit VAT Report

I'll be glad to help you with your VAT, darwish

 

By default, your January VAT will automatically offset your February VAT if you've set your VAT on purchases as reclaimable during setup. Please see the sample screenshot below. You'll notice that in Line 21, there is a deduction from the previous month's tax.

 

 

If your purchase VAT is not set as reclaimable, you'll want to redo your taxes. You'll want to create a Custom Tax (VAT) and set it as reclaimable.

 

To create a Custom Tax:

  1. Go to Taxes.
  2. Click the Add tax button in the upper right hand corner.
  3. Choose Custom tax.
  4. Enter the details of tax and put a check mark in the Purchase tax is reclaimable box.
  5. Click Save.

After this, you'll open each of your transactions with the old VAT and replace it with this new one. Then, during filing, you’ll want to go to the Taxes page and make sure to select the new custom VAT you’ve created. Then, do the filing for January and February.

 

If you have other questions, you can always visit us back here. Have a good day!