We didn't claim the VAT on some purchase invoices which have been included on previous VAT returns. What is the best way to correct this and claim the tax back?

shop2 · ‎February 24, 2020

Becky29 · ‎February 24, 2020

Hello shop2

Welcome to the Community.

If you have previous submissions, you can go into the invoices that were included on the previous VAT return and make amendments to the invoice by selecting VAT and this will cause exceptions.

Or alternatively you can make adjustments to your vat return. If this is the first return you are doing, then you would make adjustments on the corresponding VAT box in the prepare return section to account for the purchases you need to claim for that have not previously been on a Vat return. We have included an article on VAT adjustments here to help with how to do this. Thanks

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Becky29 · ‎February 24, 2020

Hello shop2

Welcome to the Community.

If you have previous submissions, you can go into the invoices that were included on the previous VAT return and make amendments to the invoice by selecting VAT and this will cause exceptions.

Or alternatively you can make adjustments to your vat return. If this is the first return you are doing, then you would make adjustments on the corresponding VAT box in the prepare return section to account for the purchases you need to claim for that have not previously been on a Vat return. We have included an article on VAT adjustments here to help with how to do this. Thanks

paul72 · ‎February 24, 2020

Hi @shop2

The problem with edits to old invoices (causing VAT exceptions) or amending VAT returns is the lack of note to explain what happened - if you're asked about it in 4yrs time, could you explain what/why?

As long as you aren't talking big amounts (>£100s of VAT) I think the neatest way to do this would be to leave the original QB transaction alone & enter a supplier credit which exactly cancels it (with incorrect VAT treatment), then enter the bill (with correct VAT treatment).

Enter the credit & new bill on day 1 of the current VAT quarter - use memo field to add a note to explain the date mismatch & what you have done.

shop2 · ‎March 02, 2020

Hi Paul

I think we're going to go with your suggestion. I know it's not technically correct, but I know it will work and at the end of the day we will be paying the correct amount of VAT.

Many Thanks

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We didn't claim the VAT on some purchase invoices which have been included on previous VAT returns. What is the best way to correct this and claim the tax back?