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Use the VAT error checker in QuickBooks

by Intuit•7• Updated 2 weeks ago

If you're preparing your VAT return, the last thing you want is to make a mistake that could cost you money. The VAT error checker in QuickBooks Online helps you avoid those errors by automatically scanning your VAT figures for common issues and anomalies—so you can catch and fix them before submitting your return to HMRC.

Important: This feature is enabled by default when you set up VAT in QuickBooks Online. You can access it directly from the VAT Centre.

How to use the VAT error checker

  1. Follow this link to complete the steps in product Open this link in a new window
  2. Choose the VAT return you want to review.
  3. Under the Actions column, select the arrow icon to show more options.
  4. Select Error check your return.

Understand your VAT error checker results

From here, the VAT error checker gives you a breakdown of all transactions for the VAT period. Here's what each section means:

  • Make sure everything is accounted for: Check that all relevant transactions are included in the VAT period you're filing for.
  • Review any unexpected items: Transactions with no VAT assigned won't appear on your return. Select Review now to edit or update these transactions.
  • Bank transactions you might have missed: Ensure all downloaded bank transactions are Added or Matched correctly.
  • Check for duplicates: Duplicate transactions may occur if you've reconnected a bank account or recorded the same transaction twice (e.g. both an invoice and a sales receipt). Select Review now to make any changes.
  • Take a closer look for peace of mind: Review high-value income and expense transactions to confirm the correct VAT codes are used. You can make changes by selecting Review now.

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


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

Yes. As long as you've added VAT to your transactions in QuickBooks, you can use the VAT error checker.


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

No. The VAT error checker helps simplify the process of reviewing VAT transactions, but you're responsible for ensuring the correct VAT codes are used for your business.


Will the VAT error checker suggest which VAT codes to use?

No. It won’t recommend VAT codes. If you'd like to see this functionality added, you can share feedback via the Help (?) icon in QuickBooks.


Do I still need an accountant if I use the VAT error checker?

Yes. While the tool helps identify common errors, an accountant can provide expert advice and help you navigate complex VAT scenarios or schemes.


Can I use the VAT error checker if I’m on the Flat Rate Scheme?

Yes. As long as the correct VAT codes are applied, the tool can scan and check your transactions.


Will the VAT error checker show my gain or loss under the Flat Rate Scheme?

No. You can find this information by viewing your gain or loss account in your Chart of accounts.


Will custom tax rates appear in the VAT error checker?

Yes. Any custom tax rates you create will be included in the checker.


Can I use the VAT error checker with a custom tax agency, such as VAT MOSS?

No. The VAT error checker only works with the default VAT agency in QuickBooks. It doesn't support custom tax agencies.


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

Yes. You can use the VAT error checker in any home currency. Just make sure the correct VAT codes are used.


Will it show currency conversions for foreign transactions?

No. The VAT error checker doesn't display foreign currency conversions. You'll need to check exchange rates separately.


The data in the VAT error checker doesn’t match my VAT detail report. What should I do?

This may be due to differing date ranges. Check that the date range in your VAT detail report matches your VAT return. If the issue persists, select the Help (?) icon to request a callback or message an expert.


How can I send feedback?

You can share your feedback directly from within QuickBooks by selecting the Help (?) icon and choosing the option to send feedback.

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