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Hi,
I am still trying to figure out QBO.
This is the first quarter I have used QBO and added transactions.
I have transactions from May paid by credit card, we pay the credit card in June so the VAT should be reclaimed with our current VAT return.
The transaction shows as May and I don't know what to do about this.
Anyone got any advice please.
For the next period, I don't think this issue will arise.
Hello there, Rafiq.
Let me bring clarifications about your concern with how VAT return works in QuickBooks Online (QBO).
When paying your credit card liability, you don't apply for VAT. Since the actual transactions paid are for the month of May, you'll have to report these transactions for May.
Also, since you're new to QBO, I'd like to share the following resources that will serve as a complete guide on how to submit your VAT return and other things you need to know about VAT in QuickBooks:
Stay in touch with me if you have other questions aside from this. I want to make sure you're issues are always taken care of.
Under the cash account scheme, I can reclaim VAT when I pay my supplier, as I have technically paid in June thus not reclaimed VAT in May, how do I account for the VAT on purchases?
With the normal supplier transactions by cheque and bank payments it is fine but the only issue is with the card payments as the payment only leaves in June.
Would it be a case of adjusting my liability as per:
https://quickbooks.intuit.com/learn-support/en-uk/vat/adjust-your-vat-liability/00/239374
Hello Rafiq,
As you are entering the transactions as expenses, the VAT on those will post into the appropriate open return immediately. If you would like it to show in the next return (when you pay your credit card) you would either need to change the transaction dates, or not put VAT on the transactions and enter a 100% VAT expense within the period you would like it to show, or put VAT on the transaction of you paying your credit card off.
We would not be able to advise which option would be best, as we are not trained accountants, so we would advise to speak to an accountant to confirm how they would want this to show in your account.
Thanks,
Talia
You could also adjust the the return if needed.
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