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A
accounts-barsign
July 4, 2021
Solved

First transactions and VAT

  • July 4, 2021
  • 1 reply
  • 0 views

So been using self employed QB for a few years but now moved onto the full hit for VAT!

 

We have an approved  Reduced rate of 5% (FRS) and have recorded that within QB's. Then have added a FRS VAT Rate for both sales and expenses that looks (?) correct but every time I try to apply it to a sales transaction I get an error saying to try re- applying it and when applying to an expense it does not even show in the drop down list?


So question -  is this the correct way of doing it ie creating a new rate or am I missing something (had actually assumed that QB would do this automatically once I had enabled VAT and confirmed FRS)?

 

Best answer by GeorgiaC

As mentioned above I am on a first year Flat rate of 5%

This has been applied to all appropriate purchases.

I can see these in the Expense Transaction Log but non have been offset in the VAT report


Hi accounts-barsign, can we check if you've created a new custom VAT code for this, or are you using one of our default VAT codes?

 

With FRS in QuickBooks, as long as you've enabled this within the tax settings, you would apply the 20.0% Standard VAT code on sales and purchase forms and the system will calculate this at your chosen FRS % in the background. 

 

Hope this helps!

1 reply

S
ShiellaGraceA
Level 9
July 4, 2021

Thanks for posting, @accounts-barsign.

 

I have some information about adding a new VAT rate. Yes, you're doing the correct way in adding it. You'll want to toggle your VAT Rates from the settings. This way, it'll refresh the system.

 

  1. Go to the Taxes page in QuickBooks, choose Edit VAT, and then Edit Rates.
  2. Tap the gear icon above VAT rates and select Include inactive.
  3. Toggle feature against the VAT code you want to activate/deactivate. See the image below.

 

 

 

 

 

After that, make the tax rate active again and check if you can now see it from the drop-down.

 

Learn more about VAT settings: Set up and edit VAT settings, codes, and rates.

 

If you need help with other taxes tasks, browse this link here to go to our general tax topics with articles.

 

Drop a reply anytime if you have other questions or concerns. I'll be right here to assist you.

 

 

A
accounts-barsignAuthor
July 6, 2021

Another quick VAT related question

 

Have now got up to date with all transactions and had a first look at the VAT reports.

 

It is showing my "COLLECTED ON SALES" however there is nothing showing in the "PAID ON PURCHASES" ??

 

Have checked and can see all the expenses with the correct VAT applied to them (under the Expenses menu) do I have do something else with them to apply the totals to off set these?

A
Ashleigh1
Level 14
July 6, 2021

Hello Accounts-barsign, 

 

Welcome to the Community page, 

 

Have you used the correct vat code as it would add those also if the date of the transaction falls outside the return period it will show on the next one. 

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