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Submit your first VAT report after your conversion to QuickBooks Online

by Intuit Updated 1 year ago

Dataswitcher does not convert the VAT (it will only copy the values). The main reason for this:

  1. Different software suppliers use different rounding algorithms, so differences will appear on invoices and transactions
  2. Most transactions are stamped with two decimals, losing information Dataswitcher needs to do the conversion
  3. Historical claims are handled differently and can cause issues in the long run

To copy the data across, Dataswitcher treats VAT as a regular line item. They will copy the received VAT or paid VAT as a line item. This means the balances of the accounts will also be copied over (unless they are cleared). In the pre-conversion checklist, it's required that you keep the VAT report for your current quarter (or month) until the conversion date. You need this to complete your very first report in QuickBooks Online.

After the quarter or month has finished and our VAT is due

We start a new VAT submission in QuickBooks Online. It should already be prepared for us within Taxes > VAT > Prepare return.

Adjusting the boxes

Since some information is still in your previous software (and QuickBooks cannot recognise this data as VAT data) we need to make some adjustments.

Next to every box on the return select Adjust.

Determine the amount to use

The amount you use you can be copied from an old VAT report (that you got from old software, ex. Sage 50).

Preparing the correction

For every box Dataswitcher fill in:

  1. In adjustment date, where you can select the end of the VAT period as the adjustment date.
  2. The rate related to that box.
  3. Adjustment account: In the case of Sage50 use either 2200 in case of sales tax, 2201 for purchase tax (these are the standard nominals for tax).
  4. Adjustment amount: Fill in the amount you got from your previous VAT report.
  5. Memo: Fill in some text to remind yourself of the adjustment.
  6. Select Save.

Double-check that the data is what you expect to return. You can either mark the report as filed or submit directly to HMRC.

Note: This is a one-time process only pertaining to the first VAT return report you do in QuickBooks Online. After the first report, you can use the VAT report in QuickBooks Online without referring back to your historical data. If you need to replicate past VAT returns, repeat this process.

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