Problems with VAT control account

[Leets]

I have created x2 journal entries to reflect that I cannot claim the VAT back on fuel payments for the personal %age use of business owned vehicle last tax year. 

Although the entries are included in the account histoiry of the VAT control account, they are omitted from the VAT 100 report, therefore reducing the VAT that I actuallu owe

[Anonymous]

Hi Leets,

Thank you for contacting the Community.

Can I ask whether the journal entries you have created have VAT codes applied?

Only transactions with VAT codes applied will post into the VAT 100 report and the VAT return.

Please let me know if there is anything else I can help with. :)

[Leets]

Hi Carly,

No, they have not as they are just pure VAT that is not allowed to be claimed - a total of £89.20 for both vehicles.  I have attached a screen dump of the journal entry for you,

regards,

[Anonymous]

Hi Leets,

For these journal entries to show on the VAT 100 report and VAT return they will need to have a VAT code applied.

If you are not claiming the VAT the code to use would be either No VAT or Exempt.

I hope this helps, Carly.

[Leets]

Thanks Carly - I can see now that I should have entered the net cost and the the 20% VAT on fuel is calculataed correctly - a total of £89.19 which is correct.

However, this now doesn't balance!!  (See attached file)

[Leets]

I have tried applying the same VAT code to the VAT control account, which makes the columns agree, but I have a warning message "Cannot assign tax code on the VAT account"  which I do understand is logical .........help!

[Anonymous]

Hi Leets,

Just to confirm the reason your entering this journal entry is because you have incorrectly claimed for purchases in the past?

You have 2 options to fix this.

The first is to find the original transaction and remove the VAT code. This will cause a VAT exception. This option will only work if that period was filed within QuickBooks Online.

The second option would be create a VAT adjustment. To do this click the Taxes tab, then Submit/Prepare Return and then Adjust on Box 4. Select the motor running expense chart of account as the Adjustment Account and add a minus (-) symbol in front of the figure you wish to adjust by.

Please let me know if there is anything else I can help with. :)