Chart of accounts payments VAT

GourmetGG · ‎August 24, 2021

Hello, I have set up a Directors liability account in chart of accounts and have submitted several invoices I paid for out of personal funds. Most of these payments include VAT which I have added. However when I look in the VAT section they show the journal entry but the value shows as zero net and VAT. Can anyone advise how I ammend this?

Maybelle_S · ‎August 24, 2021

Hello there, @GourmetGG.

The VAT return should only show all your sales that are taxable excluding the VAT amount. To check if you’re having the right figures, you might want to run the VAT Detail Report and the transactions involved.

Though if the amount is incorrect, you can click the Adjust link next to Box 6 in your VAT return. Just enter the exact amount that needs to be added or deducted (enter a negative amount if it’s a deduction) on the Adjustment amount field. Enter the Adjustment date and Reason then click Save.

Drop by again if you need anything else.

View solution in original post

DivinaMercy_N · ‎August 24, 2021

I got your back, @GourmetGG.

You may need to check the VAT codes you assigned to your payment transactions. Ensuring that the Amounts are set to Inclusive of Tax and VAT code used is not Exempt should amend this problem. Let me guide you how:

Open a payment transaction.
Next, navigate to the Amounts are section and verify if Inclusive of Tax is picked.
Then, go to the VAT field and check if the code used is Exempt.
Perform necessary changes if needed.
Once done, click Save and close and follow the same actions for the other transactions.

When finished, see the VAT section again and check if the value still shows as zero. For reference, you can visit this article: VAT exceptions and reports in QuickBooks Online (QBO).

You may also want to check the QuickBooks VAT codes page to get more information about the different VAT codes set up by QBO.

You're always welcome to post here again if you have any other concerns about your payments transactions. Wishing you and your business continued success.

GourmetGG · ‎August 24, 2021

Hello and thanks for the reply but I cannot see anywhere to do the processes you advised. Just to confirm the payments are not in the transactions section they are in the Chart of accounts. I have set VAT as 20% S purchases. The net amount is not showing in the VAT page as i mentioned earlier. No value is showing at all?

Thanks

Maybelle_S · ‎August 24, 2021

Hello there, @GourmetGG.

The VAT return should only show all your sales that are taxable excluding the VAT amount. To check if you’re having the right figures, you might want to run the VAT Detail Report and the transactions involved.

Though if the amount is incorrect, you can click the Adjust link next to Box 6 in your VAT return. Just enter the exact amount that needs to be added or deducted (enter a negative amount if it’s a deduction) on the Adjustment amount field. Enter the Adjustment date and Reason then click Save.

Drop by again if you need anything else.

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Chart of accounts payments VAT