@Whistling Dixie wrote:
I thought I had sussed out a good way of doing this by going into Taxes....Edit Taxes.... and then creating a 100% tax bracket. The new bracket appears on your tax options in the 'Edit Taxes' place and once you have clicked edit next to the 100% tax option and then go back to your entry from your bank in QB, you can choose 100% Tax option in the VAT dropdown!! Yay......then when you check it in your accounts QB only applies 50% VAT to the sum you have entered. Why?
This really needs to be sorted out for importers.....it's unworkable to keep trying to fool the system
Malcolm
Why would you do that?
& then blame the system for doing something wrong - when it's doing it wrong because YOU'RE telling it to do it wrong?!
Think about what you've created. A 100% VAT code is clearly going to do that. It's also going to make you're VAT return & P&L gibberish. GIGO = Garbage In, Garbage Out!
Please, People - any accounting system is only as good as the information that's fed into it.
QBO is NOT a replacement for an accountant (whatever the adverts may say!). Yes, there are lots of things about it that need improvement & lots of additional features that would be useful - lots & lots!
However, it will get you through the basics if your needs are simple or if you have a modicum of basic book-keeping knowledge.
OK [/rant] back to topic... there are two basic ways to create a 100% VAT balance for Importing purposes. That's the key - you're trying to create a VAT Balance - not a 100% VAT Bill/Invoice or Code.
Either the method that QB prefers - £1.00 with adjustment in the VAT box - which everyone seems to be ignoring, doing wrong or taking issue with.
That method DOES work if you understand what you're doing & do it correctly.
Method 2 (happens to be my preference because it's more transparent) - split the transaction on to two lines:
Line 1: £1000 with VAT Code S=20% gives VAT of £200
Line 2: minus £1000 with VAT Code Z=0% or Exempt gives VAT of £0
Transaction Balance is £200 (£nil to P&L but £200 of VAT).
(also, bear in mind that you will have already entered a bill from your supplier for £1000 with £nil VAT - so, on balance, you now have £1000 plus £200 of VAT in your accounts)
If there are any fees/disbursements/duty they can all go on individual lines with their own VAT entries if necessary.
Hope this helps.
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