VAT Return and MTD

Hi choicie

Are you attempting to obtain the same figures in Quickbooks as to what have been filed at HMRC and is the date range the same in QuickBooks to what was filed at HMRC?

Hi, I have always done VAT Return direct with HMRC and never with QuickBooks, I have prepared a VAT 100 with the correct figures, but when I go into send VAT Return all of the figures from Box 1 to 9 are incorrect, and I have tried to change the figures but it will not let me.

Hi choicie

You can either make adjustments or ideally you will have find out what is causing the discrepancies, it could be duplicate or missing transactions, transactions that have the incorrect VAT code allocated, use the VAT detail report and the No VAT report.

Hi, I will have another go and see what the discrepancies are.  Hopefully will get it sorted.  thank you for your help.

Hi again, I have checked VAT Return, and it seems that as I have not used QuickBooks to send VAT returns before it is entering amounts way above what I should be entering.  I do not know how to reduce them to correct amount.  Is there a way to do this?  Otherwise I will have to enter huge credits on Sales and Purchases to make figure correct.

Allow me to step in, choicie.

You can decrease or reduce the sales tax amount by creating a negative adjustment in QuickBooks Desktop.

Let me show you how:

1. Open QuickBooks.
2. Go Customers and select Create Credit Notes/Refunds.
3. Select a customer name. If you do not wish to use a real customer, click Add New and create a customer named Accountant Use Only.
4. From the Item column, choose the sales tax item you want to adjust and enter the adjusted amount.
5. Choose OK when you receive the message "Changing the amount of a tax line item may cause your sales tax reports to be incorrect."
6. In the second line, select a Discount item.
7. In the Amount column, enter the total amount equal to the adjustment(s) entered in the previous line.
8. In the Tax column, select Tax.
9. Verify that the total amount is $0.00.
10. Click on Save & Close.

I've attached a screenshot for reference.

For further guidance, check out this article that will provide more information: Process sales tax adjustment.

I'm also linking an article that will help you in the future: Resolve common sales tax issues.

Please let me know how it goes by leaving a comment below. I'll be here to keep helping. Take care.