When preparing VAT returns, you may see a column titled Exception Amount in QuickBooks Online.
What are VAT exceptions?
The amounts in this column represent transactions you have previously filed for, but have since changed, deleted or added. This is to ensure that no VAT collected (or credits earned) are missed or duplicated.
A few reasons for exceptions are if you make changes to:
- A transaction in a filed period. For example, one that has been added, edited or deleted.
- A VAT code. QuickBooks will factor the difference between amount filed and the new value, sometimes this can be a net 0 difference. For example, changing VAT code 0% to be Exempt.
- The amount. Quickbooks will factor the difference between amount and filed and the new value.
- An income/expense account line. The net 0 difference will show.
- A customer/supplier. The net 0 difference will show.