cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Everything you need to know about banking in QuickBooks Online - Discover more
sewell@bottes.pl
Level 1

Enter a standard rated vat income transaction whilst registered for FRS

7 REPLIES 7
JaeAnnC
QuickBooks Team

Enter a standard rated vat income transaction whilst registered for FRS

Welcome to the QuickBooks Community, Sewell. Let's go over your VAT settings in QuickBooks Online (QBO) so you can set up your VAT Flat Rate Scheme (FRS).

 

To enter a single standard rate, let's enable the FRS option in your settings. Here's how:

 

  1. Go to Taxes and select VAT.
  2. Click Edit VAT, then Edit Settings.
  3. In the Other VAT Options section, tick the Flat Rate Scheme (FRS) checkbox.
  4. Enter the percentage rate in the box.
  5. Click Save.

 

For more details on setting up your VAT FRS, see this article: How to set up the Flat Rate VAT Scheme in QuickBooks Online.

 

Moreover, I'm sharing this guide in case you need to correct or adjust your VAT liability in QBO: Make VAT adjustments in QuickBooks Online.,

 

Keep me updated whenever you have any follow-up concerns regarding VAT. I'll return to this thread right away to assist you further. Stay safe, and have a wonderful day ahead.

sewell@bottes.pl
Level 1

Enter a standard rated vat income transaction whilst registered for FRS

Thank you for your comment but I think you have misunderstood my question.

I'm already using FRS successfully for my accounts in QB. What I need to do is to enter just one sale transaction on the Standard Rate VAT basis so that the amount of output tax to be paid to HMRC for that transaction is the full 20%. 

 

DebSheenD
QuickBooks Team

Enter a standard rated vat income transaction whilst registered for FRS

Thanks for getting back to the Community space and letting us know that you've already set up the FRS, sewell@bottes.pl. Allow me to chime in and help you enter a transaction with a standard VAT rate in QuickBooks Online (QBO).

 

Recording VAT on the Flat Rate Scheme (FRS) works the same way as the standard scheme, you'll need to toggle the FRS to off- as the steps provided by my colleague JaeAnnC Then, create the transaction as normal and turn back the FRS to on, and these will automatically be calculated based on the FRS % entered in the VAT settings.
 

Also, to learn more about FRS and how it works in QBO, I'd encourage you to check out these articles: 

 

 

Please keep me posted on how it goes. In case you have other FRS or VAT concerns and questions about managing transactions in QBO, let me know in the comments below. I'm always around to help. Take care always, sewell@bottes.pl.

sewell@bottes.pl
Level 1

Enter a standard rated vat income transaction whilst registered for FRS

Could the solution be to switch from FRS to Standard VAT for this one entry and then to switch back to FRS for all subsequent sales transactions?

sewell@bottes.pl
Level 1

Enter a standard rated vat income transaction whilst registered for FRS

Hello Deb. Many thanks for your help. Toggling off the FRS does exactly as I want but when I toggle FRS back on the the amounts on the VAT Return change to FRS. My journal entry requiring the 20% standard VAT rate is dated

7/12/23. My current VAT period began on 1/12/23. The effective date of the toggling (FRS off and on) is fixed at 1/12/23 which means that the first toggled change is overridden by the first. Your further advice would be very much appreciated.

Angelyn_T
QuickBooks Team

Enter a standard rated vat income transaction whilst registered for FRS

Thank you for your update when toggling FRS to Standard VAT and vice versa, Sewell.

 

I can see that your transaction requires a 20% standard VAT rate. As the system reverts the amount to the flat rate scheme when toggling FRS back, I suggest seeking advice from an accountant or tax expert to handle your tax setup appropriately.

 

On the other hand, you might want to consider checking out the resources from these links for more hints while FRS setup:

 

 

Count on me if you need further help with your taxes. Just drop a comment below. I'm just a few clicks away to help you again.

sewell@bottes.pl
Level 1

Enter a standard rated vat income transaction whilst registered for FRS

I have learned that QB does not support any standard rated transactions on an FRS VAT Return. Perhaps your techies could produce a QB solution to this problem ? I bought a new van in part-exchange for my old one. I reclaimed VAT at the standard rate on the purchase of my original van and must therefore account for 20% on the sale of same. As the purchase value of my new van is in excess of £2000 HMRC rules allow me to reclaim the full 20% VAT thereon. In order that HMRC's record of my VAT reflects all of my transactions I intend to include only my FRS transactions on the QB VAT Return and then to use HMRC's own amendment procedure to add the standard rated transactions. What a hassle!! 

 

 

Need to get in touch?

Contact us