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Intuit

VAT when importing from QuickBooks Desktop

Welcome to QuickBooks Online!

We want to tell you about some of the differences between QuickBooks Desktop and QuickBooks Online that you may notice after importing. One of these differences is how you will track VAT.

Difference
My Accounts Payable (A/P)/Accounts Receivable (A/R) account balances are different.

Reason
When you filed VAT in QuickBooks Desktop, a general journal was created with amounts against A/P: in the case of a tax amount owing, and A/R in the case of a refund. Paying the bill or receiving the payment closed the journal.

In QuickBooks Online, instead of using A/P or A/R, QuickBooks Online creates a new suspense account that retains amounts owed/owing to tax agencies.

If you have completed a filing but have not yet made or received payment for that filing before you moved to QuickBooks Online, the amounts will be moved from the A/P or A/R accounts in QuickBooks Desktop to this new suspense account in QuickBooks Online.

Difference
I can't find my existing VAT payments or refunds. They used to show up in the bill payments window.

Reason
QuickBooks Online manages these payments and refunds in the VAT Centre. Simply open the VAT Centre to view your payments and refunds.

Difference
My existing filing PDFs in QuickBooks Desktop don't show up in QuickBooks Online.

Reason
Existing filing records are not retained. Please retain a copy of your filing PDFs after moving to QuickBooks Online. VAT filings done in QuickBooks Online will be stored as usual.

Difference
My tax agency used to file on a bimonthly schedule, but it now shows up as monthly.

Reason
QuickBooks Online doesn't offer a bimonthly schedule. It will be monthly after importing. You can change these details in the VAT Centre.

Difference
The liability accounts I use to track VAT have different balances in QuickBooks Online.

Reason
If you tracked your tax on sales to a different liability account than your purchase account in QuickBooks Desktop, you will see a difference in QuickBooks Online. For example, if you have Revenue set up as follows:

Image

Transactions that had a tax that tracked to VAT On Purchases in QuickBooks Desktop will track to VAT On Sales in QuickBooks Online.

You will see a difference in your chart of accounts, but the two accounts will balance when taken together, and your tax reports will be correct.

Difference
I didn't track tax on sales, or I tracked the tax to an income account, and it now tracks to a liability account.

Reason
QuickBooks Online doesn't support tracking tax on sales as an income. Instead, tax amounts track to a newly created liability account.

Difference
My VAT was tracked using the Flat Rate Scheme in QuickBooks Desktop but does not come over to QuickBooks Online in Flat Rate Scheme.

Reason
QuickBooks Online does not automatically move your VAT to Flat Rate Scheme during migration. Please edit your VAT settings to change the reporting method to Flat Rate Scheme (FRS) Cash or Accrual by following the steps here:

  1. Go to VAT > Rates and Settings > Your Agencies Name Setting > Reporting Method ▼ drop-down menu.

    Difference
    Using a group tax that includes an adjustment rate will apply only the normal rates, not the adjustment rates to the transaction.

    Reason
    QuickBooks Online only supports adjustments during filing, so you won't be able to apply adjustments to individual transactions. Please go to Prepare Sales Tax to make adjustments.

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