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Use the VAT error checker in QuickBooks Online

by Intuit•3• Updated 1 year ago

If you're preparing your VAT return, the last thing you want is to make a mistake that could cost you money. The QuickBooks Online VAT error checker can help you avoid those mistakes. It automatically scans your VAT figures for common errors and other anomalies, so you can catch any mistakes before you submit your return to HMRC.

The VAT error checker is automatically switched on in your default tax agency when you set up VAT in QuickBooks Online. You can access this feature directly from the VAT centre. Here's how.

Go to Taxes, and select VAT (Take me there).
Choose the VAT return you want to error check.
Under the Actions column, select the arrow icon to show more options.
Select Error check your return to open the VAT error checker.

From here, you can keep tabs on all the transactions for the VAT period. Here's a breakdown of each section.

Make sure everything is accounted for - Check that all your transactions are included in the VAT period you are filing for.

Review any unexpected items - Transactions with no VAT assigned to them won't be reported on your return. Check that all your transactions for this period have VAT added. You can review or edit these transactions by selecting Review now.

Bank transactions you might have missed - Make sure you Add or Match all your downloaded transactions from your connected back accounts.

Review any unexpected items - You can get duplicate transactions when you connect a bank account and import bank feeds, or when re-connecting a bank account. It may also happen if you've created multiple transactions for the same customer. For example, you create an invoice and a sales receipt for the same transaction.

Take a closer look for peace of mind - To ensure that you have used the correct VAT codes required, review the largest income and expense transactions that impact your VAT return. Select Review now to make changes if you need to.

Once you're happy with everything, select Prepare now to prepare your VAT return and submit to HMRC.

Frequently asked questions

Can I use the VAT error checker on all VAT schemes?

The VAT error checker helps verify transaction data. As long as you have entered a transaction in QuickBooks that has VAT on it, you will be able to use VAT error checker.

Does the VAT error checker or Intuit guarantee that my VAT return is 100% accurate?

The VAT error checker is designed to help simplify the process of checking transactions with VAT. You'll need to ensure that you're using the correct VAT codes that apply to your business.

Will the VAT error checker tell me which VAT codes to use?

No. The VAT error checker will not be able to do this. If you think this functionality will be a big help for you and your business, we want to hear it! Share your thoughts via the feedback option available in QuickBooks.

I'm a business owner using QuickBooks. If I use the VAT error checker does this mean I no longer need an accountant?

No. The VAT error checker is designed to scan your VAT return and check for errors. However, there may be times when you need to consult with an accountant to understand the impact and benefits of the VAT codes or schemes you use.

I'm on Flat Rate Scheme, can I use VAT error checker?

Yes. The VAT error checker is designed to help simplify the process of checking transactions with VAT. As long as you have added the correct VAT codes you can use VAT error checker to scan and check your transactions.

Will the VAT error checker show me my gain or loss while I am on Flat Rate scheme?

No. You will not be able to view your gain or loss using the VAT error checker. You can view your gain or loss account in your chart of accounts.

I have a custom tax rate, will VAT error checker show me this tax rate when I use it?

Yes. If you create a custom tax rate, it will show up on the VAT error checker.

I have VAT MOSS created as a custom tax agency in QuickBooks. Can I use the VAT error checker for this?

No. The VAT error checker will only work for the default VAT agency in QuickBooks. It cannot be used on any custom tax agencies you create.

My home currency is not GBP. Can still I use the VAT error checker?

Yes! If your home currency has been set to a foreign currency other than GBP, you can still use VAT error checker. Make sure you add the correct VAT code to your transaction.

Will the VAT error checker show me the conversion for foreign currencies?

No. The VAT error checker will not show you the conversion for any currencies that you have used to add an income or expenses in QuickBooks Online.

How can I send my feedback?

The best way to get your feedback across to us is from within the ?Help icon in QuickBooks Online.

The data on the VAT error checker does not match my VAT detail report. What do I do?

This may happen if the dates on your VAT details report are different. Check the dates and manually adjust them to match the dates on your VAT return. If the issue still persists, select the Help ? icon in QuickBooks to request an instant callback, or use the messaging feature to connect with an expert.

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