PVA Account- how would you amend and reconcile this account?

Hi eva-timulakova-m Thanks for reaching out to us here on the Community. I have included an article that references how to undertake reconciliation: https://intuit.me/3LLRRwt If you have any further questions please let us know and we'll be happy to help.

Thank you John for you reply and thank you for letting me know how to reconcile bank, however my question is for PVA VAT account. Nothing to do with bank . Thank you. 

Hi eva-timulakova-m I'd be grateful if you can provide me with some further context of the issue.

Hi John, 

The issue is - how I can reconcile the PVA VAT account against our HMRC monthly statement ? Everything is written in the original message. Thank you. It seems that PVA for QuickBooks is a big gap. 

Hi eva-timulakova-m You can run the VAT liability report and select the relevant PVA code from the list which will give you a breakdown of the transactions where PVA codes have been used. 

Yes, I fund out this. So why PVA VAT amount on VAT control account is showing Zero after posting an invoice?>

Hi eva-timulakova-m That's great news that you've located the report. The reason that the PVA VAT amount shows as zero on the VAT control account is due to the way the codes work/are applied. The VAT amount of transactions where the PVA codes are applied, the VAT amount/s will be applied to box4 and also box1 therefore the amount in the control account will be zero. I have included an article that references PVA codes and how they're applied: https://intuit.me/4c9xGU3

Thank you for your reply. Can you amend the PVA VAT amount on the invoice of posting? As QB will calculate automatically the VAT element but it will never match with the HMRC amount, and this should show on the  invoice posting. 

Hi eva-timulakova-m If you use PVA codes then it's not possible to amend the amount that is posted on the invoice as a negative and a positive as this is how the codes as designed to work. The VAT amount due will be zero, which is posted to the VAT control account, boxes 1 and 4 on the VAT return and also the value of the goods excluding VAT to box 7. Therefore when you submit the return to HMRC the amounts due/submitted will be correct. We'd be grateful if you can provide us with an example of how an invoice posting in QuickBooks isn't matching to what has been submitted to your HMRC account.

HI John, 

The PVA invoice is posted the same way as any other supplier invoices. As you are aware QB will automatically calculate the PVA VAT amount, and this is the issue. This amount will never match with the HMRC PVA import statement, which is the amount calculated at the customs clearance. Nothing to do with the VAT quarterly reports. The PVA VAT account should be reconciled with the HMRC PVA VAT monthly statement on a monthly basis. The question is how I can amend the PVA VAT amount  on the invoice in QB that is correct as per HMRC statement? Thank you. 

Hi eva-timulakova-m The PVA VAT amount on the invoice is recorded at a net VAT of 0, as it is plus and minus. When you receive the PVA statement showing what is owed you can adjust box 4 on the open return to account for that amount. Nothing needs to be changed on the invoices.

Yes, this makes me to go VAT Return every time when I am posting PVA invoice  in order to make an adjustment for the correct PVA VAT amount. This is time consuming for sure. 

Hi eva-timulakova-m We appreciate your comments however this is the correct way to account for the amounts, we'll certainly submit your feedback, no problem at all. If you require further information or assistance please reach out to us and we'll be happy to help you.

Hi John, this is the correct way according to QB. For the user it is time consuming, feedback already submitted. Thank you.