Hi all. Hoping for some help with how to enter a bit of an unusual transaction so it gets folded into the VAT return. Details as follows:
My question is - how do I record this payment purely as VAT? . . . . I have an invoice from the logistics company that is all VAT - If I enter a bill or expense the value of the actual item is £0 because the full amount of the payment is VAT. As an example - (not actual number) : Bill amount = £1000, VAT amount = £1000, transaction amount is £0.
The only Account codes available are "VAT Control" and "VAT suspense" both current liabilities.
I hope that makes sense and would appreciate any advice on how to record this correctly so it gets rolled into the next VAT return
I've got you some ways how to record VAT paid to HMRC as a payment, @mr_metal_man.
QuickBooks Online tracks your payment due dates in one place so you can avoid late returns and extra fees. To record VAT in your account, here's what you need to do:
In addition, VAT Control and VAT suspense are only the default accounts use to record VAT payment. I also suggest to consult Accountant. They can provide the correct information and accounts to utilize and ensure your records are accurate.
I'm adding these articles to help you manage VAT in QuickBooks:
Get back to us here if you have other questions about tracking your VAT-related transactions. I'm always here to help. Keep safe!
Thank you for the reply.
I have tried what you suggested but cannot see any way of doing this.
I go to Taxes. I look at VAT
There are 2 tabs - Payments and Returns
In the Payments tab I can see no option or button to "Make Payment" as you suggest. There are buttons for viewing and deleting existing VAT payments. There are options for viewing various reports. There are options for editing and creating tax codes.
On the Returns tab I can see past returns that have been paid. And I can see the open return that is in progress for this VAT quarter. But there are no options to add a payment here either. Only options to prepare the return or view various options but nothing that will allow me to post a payment.
So I am still stuck.
Hello there, @mr_metal_man.
I appreciate you coming back and updating us on the results after following the steps above.
To record VAT payment on your QuickBooks Online (QBO) account, you'll have first to file a return. If done, go to the Returns tab to record the payment.
Let me show you how:
To help you manage VAT in QuickBooks, here are some articles that you can visit:
I'll be right here to help if you need anything else. Enjoy the rest of your day, @mr_metal_man.
I don't believe this is correct.
I need to record the payment BEFORE the VAT return is filed otherwise the amount of the return will be wrong.
I am an experienced QB user and familiar with submitting VAT returns.
So we have come full circle - I still need a way of posting this amount to the VAT account.
I called the help desk and Hannah talked me through it.
Posting here as it may be useful to others.
Recording a 100% VAT expense can be a bit tricky in QuickBooks Online, but don't worry, we have a a step-by-step guide on how to record it.
This will create a 100% VAT transaction that will show in Box 4 on the VAT return.
Intuit QuickBooks | Customer Success Representative
Hi mr_metal_man If you'd like to record a transaction that is purely VAT and reclaim the amount in your VAT return/submission you will have to:
Select New+ > Expense > ensure that you enter the bank account that the amount was debited from in the Payment account field and the date the amount was debited in the Payment date field > on line one in the category column select the purchases account > In the Amounts are field enter Exclusive of Tax > in the amount field enter 0.01 > in the VAT column enter 20%S (20%) > on line two enter the same purchases account as line one in the category column > in the amount column enter -0.01 > in the VAT column enter Exempt > enter the amount of VAT you would to reclaim in the VAT field between the Subtotal and Total. We've also included an image of what the transaction should look like below.