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K
kneesocks
September 4, 2022
Solved

VAT exception error

  • September 4, 2022
  • 1 reply
  • 0 views

Hi,

I seem to have accidently changed the VAT rate for an income entry in 05/07/2021 the other day when I was on a differnent VAT rate as I didn't set the range correctly when sorting.

It now won't let me change it back as it says it was filed. I don't believe it was as I only started filing my VAT from August 2021 in QB.

It now brings this up as an exception my current VAT quarter for May2022 to July 2022. Just a bit puzzled by these events. Why would it let me change it if it was already filed then not let me change back?

Shall I just submit it anyway and ignore it as its only a £70 entry (£7.80 in VAT)? Or should I try adjust it and take off?

Many thanks,

 

 

Best answer by AlcaeusF

Not sure if attached correctly there.

 

The error when trying to change the VAT rate

When entry 'created'. Income was recieved 05/07/21.


Hello @kneesocks,

 

Thank you for getting back to us and providing a screenshot of the issue. Allow me to chime in and help you correct the VAT rate in QuickBooks Online.

 

Yes, you're right. This has something to do with the FRS feature from your VAT settings.

 

Before you can undo or make a correction, you can switch off Flat Rate Scheme (FRS) temporarily. Once disabled, you should be able to make changes without getting the error.

 

In case you need the steps, here's how:

 

  1. On the left navigation bar, click Taxes.
  2. Go to the VAT tab.
  3. Select Edit VAT.
  4. Choose Edit settings.
  5. Uncheck the Flat Rate Scheme (FRS) box temporarily.
  6. Hit Save. 

 

Additionally, I've attached an article you can visit to learn how to edit transactions in a filed VAT period: Flat Rate Scheme (FRS) in QuickBooks Online.

 

I appreciate you for keeping in touch with us in this public space. If you need more assistance correcting the rate, let me know. I'll keep an eye on your response. Take care.

1 reply

S
SarahannC
Level 9
September 4, 2022

Thanks for coming here, kneesocks. I'm here to address and share the details you need to fix this properly.


Yes, we can add an adjustment to your VAT rate. This helps you keep your VAT rate accurate from the current one you entered. I'll show you how:

 

  1. Go to Taxes and select VAT.
  2. Find the tax period you need to adjust, then select Prepare return.
  3. Select Adjust against the entry to be adjusted.
  4. Select the Adjustment date and the Tax rate.
  5. Select the Adjustment account for adjusting VAT.
    • Choose an expense account if you need to increase the tax due.
    • Choose an income account if you need to decrease the tax due.
  6. Enter the Adjustment amount.

 

Before doing so, I'd recommend reaching out to our Support Team to check the status and verify the main reason why the system won't let you change back the VAT rate. This helps us figure out and apply an accurate solution to your concern. To contact them, click the Help icon within your QuickBooks Online company and select Contact us.

 

Here are some articles that you can check for additional information about handling VAT rates:

 

 

I'm always here if you need anything else about managing VAT rates recorded in QuickBooks. Take care and have a good one.

    K
    kneesocksAuthor
    September 4, 2022

    Thanks SarahannC.

    I did reach out before posting here but after a good time was only sent a few links and the chat was ended which wasn't great!

    Before I start adjusting, worth saying the VAT has the erroneous income entry as an Exception rather than an Amount

    VAT Due (Box1) £7.80

    Net Value (Box6) £62.37

    Adjusting will only take it off the amount perhaps so better to leave? Would prefer to have no exceptions really but no real harm?

    I'm hesitant to adjust in case you can't undo...I find QB has a habit of letting you do things then have a stringent new way to have to undo them so its all recorded!

     

    Many thanks

     

    LieraMarie_A
    LieraMarie_A
    Level 8
    September 4, 2022

    Hi there, @kneesocks. Let me share additional information about creating a VAT adjustment.

     

    Beforehand, do you mind sharing a screenshot of the error message you're getting when changing the VAT rate? Adjusting will increase or decrease the amount due. If the return isn't marked as filed yet, you still have the option to delete it. We recommend reaching out to your accountant if you're unsure.

     

    Here's how to delete it:

     

    1. Go to the Gear icon at the top and then Chart of accounts.
    2. Find the income or expense account you used to add an adjustment.
    3. Under the Action column, choose Run report from the dropdown menu. If the report appears blank, make sure you've selected the correct report period and run it again.
    4. Select the VAT adjustment.
    5. Click the Delete option and then Yes to confirm.

     

    Feel free to check out this article for your reference: Create or Delete a VAT Adjustment.

     

    Don't hesitate to comment below if you need any further assistance getting your VAT straightened out and let us know on how the adjustment helps resolve the issue. We're always here to help you.

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