Deregister VAT not working

trianglet · ‎April 30, 2021

VAT got set up on my quickbooks account by mistake. The business has never been VAT registered. I have tried to remove it, following these instructions:

Log into QuickBooks Online.
Click the Gear icon in the top right hand corner.
Select Account and Settings.
Click Advanced from the left hand options.
Under the section Accounting click the edit icon.
Change Default tax rate selection to No VAT.

And then also via the VAT settings page, and turning off the the MTD.

Nothing seems to work, and quickbooks is still opening new VAT returns in the VAT page. I have contacted intuit's phone help, and the guy took me through those steps, and seemed confused, and said there's nothing he can do.

Surely it's possible to stop this happening?

ShiellaGraceA · ‎May 03, 2021

Thanks for getting back to us, @trianglet.

If you are selecting NO VAT on the transactions or if you have set the default to NO VAT the transactions should not be impacting the VAT return in any way. What we'd need to do is look at the transactions showing in the VAT control account. Whether the MTD is switched on or not it will not file anything unless you followed a process to file it. We'd need a screenshot of the Vat control account, could you DM/PM us on QuickbooksUK on Twitter/Facebook or Instagram and we'll take a look at that.

Please know that you're always welcome to reply to this thread anytime if you have other questions or concerns with your account. I'll be around for you. Take care and have a lovely day ahead.

View solution in original post

Mark_R · ‎May 03, 2021

I'm here to help turn off the VAT in your QuickBooks Online (QBO) so you can get back to working order, @trianglet.

First off, I'd like to appreciate the time and efforts you've taken to turn off the VAT. Let's take a look at another option that causing new VAT returns keeps on opening.

I can see that changing the default tax rate and turning off the MTD from the VAT menu doesn't work. Let's disconnect the Making Tax Digital option from the Account and Settings menu. This way, your VAT will completely de-registered. Here's how:

Click the Gear icon, then select Account and Settings.
Go to the Advanced menu.
Select the Making Tax Digital option.
Choose Learn how to Disconnect, then follow the onscreen instructions.

I'm adding this article for more details: Set up and edit VAT settings, VAT codes, and VAT rates.

Just in case you'll be interested to know the common VAT codes, you can read this article here.

Keep in touch if you need any more assistance turning off VAT, or there's something else I can do for you. I've got your back. Have a good day.

trianglet · ‎May 03, 2021

Thanks for the response. It isn't connected, so the only option is to connect it. This was something the support guy I spoke to also advised me to do, but disconnecting made no difference to the problem.

A big issue I have now is that every new transaction that is coming through ends up being wrongly added to the VAT control account. Could you advise what's going on here and how I can resolve it?

ShiellaGraceA · ‎May 03, 2021

Thanks for getting back to us, @trianglet.

If you are selecting NO VAT on the transactions or if you have set the default to NO VAT the transactions should not be impacting the VAT return in any way. What we'd need to do is look at the transactions showing in the VAT control account. Whether the MTD is switched on or not it will not file anything unless you followed a process to file it. We'd need a screenshot of the Vat control account, could you DM/PM us on QuickbooksUK on Twitter/Facebook or Instagram and we'll take a look at that.

Please know that you're always welcome to reply to this thread anytime if you have other questions or concerns with your account. I'll be around for you. Take care and have a lovely day ahead.

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Deregister VAT not working