Hi, i will be doing first MTD vat return this quarter.  but i bought in transactions for last year so i can use for my year end accounts.  it won't let me reconcile the old vat returns in quickbooks without connecting to HMRC, i have already submitted them manually, and just want to do returns from this quarter forward.  how do i reconcile the vat account so it will let me do the next return

Welcome to the Community space, @Michelle I. I'm here to help you reconcile the old returns in QuickBooks.

Since you already submitted the transactions manually, you can manually reconcile the old vat returns in QuickBooks. However, I'd still suggest contacting the HMRC first and verify if they received the old returns that you manually send to them.

To manually reconcile the transactions, here's how:

1. Go to the Accounting menu and select Chart of accounts.
2. Find the account you’re reconciling and select Account history
3. Click the transaction to expand the view.
4. Select the box in the tick column until you see an R. This manually reconciles the transaction.
5. Click Save.

For more details on how to reconcile an account, see this article: Reconcile an account in QuickBooks Online.

Upon sharing the steps above, I'd still suggest contacting your accountant. They can provide further guidance with the setup and provide more expert advice in dealing with this concern.

Once done, you can start paying your current tax liability. These articles will guide you through the process:

• Submit a VAT return in QuickBooks Online
• File your VAT return and record tax payments in QuickBooks Online

​​Tag me in a comment below if you have other questions about VAT in QuickBooks Online. I'll be sure to get back to you. Take good care.

i was due to submit 1st vat quarter when they switched me to mtd and i could not submit online as have been for years i joined QuickBooks in April it seems i cant submit 1st quarter only 2nd now so what do i do ?

Thank you 

Thanks for joining the thread, @dd1010. I'll help you file the previous VAT returns in QuickBooks Online (QBO).

To submit, you'll need to select a VAT scheme to edit or enter a starting date of your return. Let me walk you through the steps how:

1. Go to the Taxes menu, and then choose VAT.
2. Select Edit VAT from the Edit settings drop-down.
3. Choose Date from Start calculating my VAT from drop-down list.
4. Make sure to select the right filing frequency.
5. Choose a VAT scheme and the correct Effective date for new scheme.
6. Click Save.

Let's also make sure to record the historical transactions from your first quarter correctly. This way, you can file your return seamlessly.

When you're ready, you can now submit your VAT returns. Once done, you can record your tax payments in QBO to keep your information up-to-date. 

I'll keep an eye out for your reply, so feel free to leave a comment below if you have more questions about filing your taxes. Have a good one. 

We have been unable to submit our VAT return via the MTD option as keep receiving error message - Client or agent not authorised. We have disconnected from the HMRC connection for making tax digital and then reconnected but it is still coming back with the same error message. We have also cleared our cache. Please can we have some further guidance.

Hello Sarah172, thanks for posting on this thread, if you could ring the support line on 0808 234 5337, line is open mon to fri 8am to 7pm and is free from any UK landline and mobile. The agent on the phone will ask for some information off you and then they will be able to have a look into this more for you to see why your getting that message show up and they will tell you the steps that need to be taken. 

I don't have the Making Tax Digital option in Account Settings. It looks like all the articles and guides on Quickbooks are created for UK companies and are forgetting about foreign companies selling goods to the UK. How can a company that's based outside the UK set up MTD and submit a return through QuickBooks?

Hello there, @Dominika_.

Thanks for joining this thread about the MTD option in QuickBooks. I want to help you with this topic but I will be needing more information from you.

Can you tell me what country of QuickBooks are you using? Do you have the UK version or a different one? I need this so I can provide the options you need for your account.

This thread is tagged under QuickBooks UK which is why all the articles are for the mentioned country. If you have a different one, I can look it up for you and see if you are able to set up MTD.

Please mention me or reply to this post for the additional details. I'll be waiting for your response. Have a nice day!

Hi @Jen_D! Thanks for replying. I have QuickBooks for my Canadian business, but I sell internationally, so I'm also registered for UK VAT and need the MTD option now. But I cannot find it in the version of QB I have. I couldn't find any information on MTD for the Canadian version of QuickBooks. 

I appreciate your time coming back here, @Dominika_.

Thank you for the additional details you've shared here. Now I understand better your situation with handling multiple transactions from different countries.

I want to share some insights about this feature you're looking for in QuickBooks Online Canada. Each version of our software has its own tax preference that's mainly based on a specific country where you're using QuickBooks from.

At the moment, the option to assign other countries to your tax settings in not yet an option. That is why the MTD setup is only available in the United Kingdom version of QuickBooks and can't be associated to Canadian QB.

With that being said, you will need to record and file your MTD outside the program for tax compliance. Also, with regards to the entries, they'll have to be recorded with great care so you can report them accurately.

You might want to reach out to a tax advisor to get help with manually recording your UK transactions. If you don't have one, we can help you find someone to help you. You can visit the following link to locate accountants based in Canada: https://quickbooks.intuit.com/ca/find-an-accountant/

Please get in touch with us again if you need further with your transactions and taxes. You can use this thread anytime.

Hi @Jen_D , the MTD needs to be reported through the program, not in an external file - that's the whole idea. So do I understand correctly that at the moment, if I want to use QuickBooks for my UK VAT, I would need to get Quickbooks UK account in addition to my Canadian QuickBooks account that I already have? Is that right?

Yes, you're correct. @Dominika_. 

Besides your current QuickBooks Online Canada company, you can sign up for a QBO UK account. This allows you to keep track of UK VAT within QuickBooks. Once you're signed up, you can then start setting it up depending on your preference.

If you want QuickBooks to automatically perform the VAT calculations for accurate filings, browse this guide for the detailed steps: Set up and use VAT in QuickBooks Online. If not, then you can manage the VAT process manually. See this for more information: Set up and edit VAT settings, codes, and rates in QuickBooks Online.

I'm also adding these helpful resources that you can check in case you're ready to make liability payments:

• Submit a MTD for VAT return to HMRC in QuickBooks Online
• File your VAT return and record tax payments in QuickBooks Online

Keep in touch for any additional concerns you have about handling taxes in QuickBooks. I'm always glad to be of help. Have a good weekend and keep safe!

 

Hello, upon clicking Take Action when trying to reconnect to HMRC (have been connected / done VAT returns fine previously) the pop up window that opens says:

{"Message":"You do not have the proper permission to access that feature.","dojoLocale":"en-gb","state":"Error"}

and that is all, so I can’t re-connect to re-authorise MTD.

Any help? Many thanks! 

(Have tried to disconnect and reconnect to HMRC under Settings > Advanced (said HMRC connection was ON)

Thank you for posting here in the Community, @ChrisJUK.

To re-authorise Making Tax Digital (MTD) in QuickBooks Online (QBO) you’ll want to ensure that everything is done the following are correct:

• You're not signed up for MTD.
• Although you have registered for MTD, HMRC is not connected to you.
• You need to re-authenticate MTD in QuickBooks.
• For the Government Gateway, you used the incorrect credentials.
• Verify that you are utilizing the correct VAT number.
• The MTD link was set up by an accountant.
• The MTD connection was established by a client (for accountants)
• You don't owe anything to HMRC right now.

If you still encountered the same issue or error, I suggest you reach out to our Technical Support Team. Our phone representative has the tools to securely pull up our account and double checked your company file to get into the core of the issue.

Since the Community is a public forum, contacting our support is the best option.

Here’s how to get in touch with them:

1. Go to the (?) Help icon in your QuickBooks Online (QBO) account.
2. Select the Search tab, and click Contact Us.
3. Enter a brief discussion of your concern and click Continue.
4. Select either Chat with us (if you prefer messaging) or Give us a call.

Please ensure to review their support hours to know when agents are available. This way, you can contact them at a time that is convenient for you. 

Furthermore, once you got sorted out with re-authorising your MTD, you can refer to this article to submit it for VAT return: Submit a MTD for VAT return to HMRC in QuickBooks Online

Feel free to get in touch if you need further assistance with taxes. The Community always has your back. Stay safe! 

Hi @Mich_S - thanks for clarifying. A separate account just for the UK VAT is a little frustrating. And I stumbled upon another issue. It seems that it doesn't let me set up the UK account with my Canadian billing address. It looks like the form is filtering for UK postal codes and counties. Is there some other way to set up the account, or can someone just add it to my Canadian account? I'll be grateful for some guidance. Thanks!

Thanks for getting back to this thread, @Dominika_.

I can see the importance of having another way to set up the UK account with my Canadian billing address. Currently, QuickBooks Online UK is limited to UK addresses, same as other regions. 

If you're located in Canada, you'll have to subscribe to QuickBooks Online CA version.

Additionally, let me share these link to help you manage your VAT in QuickBooks:

•  Set up and edit VAT settings, codes, and rates in QuickBooks Online.
• File your VAT return and record tax payments in QuickBooks Online

Keep me posted if you have further concerns with Making Tax Digital (MTD) in QuickBooks Online. I'll be happy to help you. Stay safe!

Hi @Rubielyn_J I think I'm a bit confused now. So I was told by your colleagues in this thread before that the only way to have the MTD option in QB is to have the UK version of it in addition to my Canadian one (that I already have for my Canada-based business), where I cannot do it for the part of my sales that come from the UK. But now you're saying that it's not an option? And I should do it through the Canadian one? And that would be MTD that is required by HMRC?

Let me chime in to clarify some information about MTD in QuickBooks Online (QBO), @Dominika_.

It is correct that the MTD is not an option in the Canadian QuickBooks account. That said, you’ll have to set up a UK QBO account to track your VAT. As my colleague mentioned in this thread, assigning other countries to your tax settings is not yet an option and MTD setup is only available in United Kingdom versions of QBO.

In addition, you might want to visit this website to learn how to handle VAT and overseas goods sold directly to customers in the UK.

Feel free to reply to this thread if you have further questions about taxes. Stay safe!

Hi @RoseJillB - okay, got it. So now back to my previous question - how can I set up UK QBO when it doesn't allow me my Canadian billing address? 

@Dominika_ 

You can utilize PayPal to pay your QBO account.

https://quickbooks.grsm.io/UK

Thank you @Fiat Lux - ASIA ! Paypal worked!

Hi

I am trying to submit the Vat qtr return , but I am getting this message when pressing send to HMRC.

Error while fetching tax obligations from HMRC (code 'indirect tax - 10355').

I have disconnected and re-established the connect with HMRC via the advanced settings, and it is showing that I am connected to HMRC.

Any assistance would be appreciated.

Thanks

I appreciate taking the time to submit your VAT returns, finance176.

It's possible the webpage cache data is corrupted and it is a common reason for connection issues (when submitting the VAT returns). In this case, let's confirm this by using a private or incognito window: 

• Google Chrome: Ctrl + Shift + N
• Mozilla Firefox: Ctrl + Shift + P
• Safari (new versions): Command + Shift + N

Next, log in to QuickBooks Online as you normally would and try submitting the VAT quarter return through the private window. When there are no error messages, close it out and go back to the regular browse. Next, clear the cache to fix the connection problem. Finally, close the browser to complete the process. 

Another way to fix this is to use another supported browser (if you don't want to clear the cache). If the issue persists, please reach out to our Customer Support Team. They'll pull up your account in a secure environment and help you with this one. Here's how:

1. Go to the Help menu, and select Talk to a human.
2. Choose Talk to a human again.
3. Proceed with I still need a human.
4. Click the Contact us link.
5. Select either Start messaging or Get a call.

Need help submitting a VAT return? You can check this article for the detailed instructions: Submit a VAT return to HMRC - MTD for small businesses. Take a look at other topics here if you need a guide or two in doing tasks in QuickBooks Online.

I can assist you with other tasks and processes in QuickBooks Online. Just leave your questions or concerns here and I'll answer them. 

Is the drop in session still active? Post says 'add your question below', but no button to add a question?

Regards

Phillip