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andrew-supplier-
Level 1

I'm add a VAT pymt "You have either selected a tax liability account on a transaction where it's not allowed, or haven't specified a tax rate along with it." Why?

Surely paying HMRC VAT owed doesn't require a 20% VAT also?
3 REPLIES 3
andrew-supplier-
Level 1

I'm add a VAT pymt "You have either selected a tax liability account on a transaction where it's not allowed, or haven't specified a tax rate along with it." Why?

Apologies. The character count was too small for my verbosity. So my question again in English is:

When trying to add a VAT payment to HMRC to my transactions I get the error: "You have either selected a tax liability account on a transaction where it's not allowed, or haven't specified a tax rate along with it."

 

QB chose the category "VAT Control" and I applied a "0% rate" or "Exempt" - neither of which it seems isn't right. How can add the transaction?

Archie_B
QuickBooks Team

I'm add a VAT pymt "You have either selected a tax liability account on a transaction where it's not allowed, or haven't specified a tax rate along with it." Why?

Thank you for posting in the Community, andrew.

 

Allow me to help and ensure you can add VAT payment in QuickBooks Online.

 

You'll receive this error message "You have either selected a tax liability account on a transaction where it's not allowed, or haven't specified a tax rate along with it." if you selected a different category or liability account for VAT payment. 

 

To fix this, you need to check and make sure you're using the default category or liability account for the tax payment. I've added this link to guide you in managing VAT payments: Manage VAT payments in QuickBooks Online.

 

Also, VAT can get complicated. I recommend consulting the tax agency or reaching out to an accountant for guidance.

 

For the complete guide for VAT codes, you can visit this article: VAT codes in QuickBooks Online: A complete guide.

 

Let me know if you have other concerns or questions about VAT payments. I'll get back to you as soon as I can. Take care.

paul72
Level 8

I'm add a VAT pymt "You have either selected a tax liability account on a transaction where it's not allowed, or haven't specified a tax rate along with it." Why?

Hi @andrew-supplier- 

 

Just to clarify - you MUST use the VAT File / Pay VAT screens to enter VAT payments/refunds into QBO.  If you then use the Bank Matching system, the payment will be matched.

 

If you enter the payments manually or through the Matching system you will run into problems.

 

Hope this helps.

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