Intergrating Zettle and Quickbooks and incorrect VAT amounts

TLC1231 · ‎September 27, 2021

Good evening,

I integrated my zettle account with my Quickbooks account in March, unfortunately I didn't understand Zettle very well and it wasn't until Mid July that I realised all of my products were set at 20% VAT rate. I am trying to reconcile and get everything sorted and wondered if this made any difference at all?

When I run my Sales report in the Chart of Accounts I can see each invoice has a memo with sales number and then the VAT rate incorrect.

Should I manually change each of these in the Chart of accounts and delete the VAT rate, which will take a long time as there are 1 per day between March and when I changed it in Zettle?

Or does this not matter and I can just leave it and ignore.

During this period I was not VAT registered so do not need to perform VAT returns, however, from October 1st I will need to be. Will it pick up this information from the past in error?

Thanks

Ashleigh1 · ‎September 28, 2021

Hello TLC1231, thanks for coming back to us here, It wont pick up the historical VAT, however you should make the changes to NO VAT before you file your first return, as if you change it afterwards it will create exceptions. You should make the changes as the accounts will be incorrect if you dont. You will have to do this manually and go into each transaction to change them to the correct one and save it.

View solution in original post

CharleneMaeF · ‎September 27, 2021

I'm here to ensure your VAT amounts get corrected, TLC1231.

Having incorrect VAT rates can affect your filing this October. To resolve this, I'd suggest reaching out to your accountant. They'll be able to help you reclassify your transactions.

Otherwise, you can visit our Accountant Near Me page to find one. Another option is to manually change the rates to VAT exemptions.

Additionally, I've added these articles that'll help you stay informed on managing your VAT rates in QuickBooks Online.

Feel free to leave a reply if you have more questions about managing VAT rates, TLC1231. I'll be here to answer them for you.

TLC1231 · ‎September 28, 2021

Hello thank you for replying,

just to clarify

even though I will only need to start filing taxes from October onwards I will still need to correct these past deposits even though they will not be included in my VAT submissions?
If so the best way is to manually change them? Could you advise me the easiest way to do this? I have had a play around and it seems I can select each deposit and manually change the VAT to 0% or should I change it to NO VAT? There are a couple hundred so would be nice to make sure I do it right the first time!

thanks

Ashleigh1 · ‎September 28, 2021

Hello TLC1231, thanks for coming back to us here, It wont pick up the historical VAT, however you should make the changes to NO VAT before you file your first return, as if you change it afterwards it will create exceptions. You should make the changes as the accounts will be incorrect if you dont. You will have to do this manually and go into each transaction to change them to the correct one and save it.

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Intergrating Zettle and Quickbooks and incorrect VAT amounts