cancel
Showing results for 
Search instead for 
Did you mean: 
Not applicable

On our Ups bill there is no VAT charged on the Shipping but VAT is charged on the value of the goods shipped. How do i put this into Quickbooks please?

 
Solved
Best answer 07-23-2019

Accepted Solutions
Highlighted
QuickBooks Team

Re: On our Ups bill there is no VAT charged on the Shipping but VAT is charged on the value of th...

 

Hey Michelle68,

 

 

To record this, create a bill with the details below and then match this to the transaction in your Banking For-review tab. 

 

 

1) Go to the + icon > Bill and enter the suppliers name and the date of the invoice. Set the 'Amounts are' to 'Exclusive of tax'.

 

2) On the first line, enter the total amount of the net charges from the 'Net Charges' column minus the VAT, so 677.44 - 225.88 = 451.46 (you can enter this as one amount or on separate lines as per the invoice breakdown if you prefer) - with the vat code 'No VAT'

 

3) One the line below this, choose an expense account in the category drop-down, and enter the amount as 0.01 with 20% S VAT code

 

4) Enter another line below this with the same expense account with the amount of -0.01 and the Exempt (0%) VAT code

 

5) Scroll down to the Subtotal and overwrite the box beside 'VAT @ 20% on 0.01' with the VAT amount 225.88.

 

 

The total bill should total 677.44. Save & make payment against the bill, then match this in the Banking screen.

 

 

Thanks!

View solution in original post

11 REPLIES 11
QuickBooks Team

Re: On our Ups bill there is no VAT charged on the Shipping but VAT is charged on the value of th...

I've got you covered in this VAT concern, @Michelle68.

 

If this is a customer invoice, you can add a shipping field on the invoice and select NO VAT for the transaction. To enable the Shipping option on your invoices, please follow these steps:

  1. Select the Gear icon, then Account and Settings.
  2. Click Sales on the left.
  3. Select within Sales form content.
  4. Place a check-mark next to Shipping.
  5. Select Save.

Once done, you can now create your invoice and select NO vat for Shipping. I've attached a screenshot for your visual reference.

 

However, if you're referring to a bill, you may add the shipping as a service item and select NO VAT on the VAT code section.

 

You may also visit these articles below about handling VAT codes in QuickBooks Online:

There you have it, Michelle68.

 

Please let me know how it goes or if you need further assistance. I'd be pleased to help you out. Take care!

Not applicable

Re: On our Ups bill there is no VAT charged on the Shipping but VAT is charged on the value of th...

Thank you BettyJaneB.  I need to know how to add the VAT for the value of the goods shipped on the bill not for the value of the bill please?

 

Regards

Michelle

QuickBooks Team

Re: On our Ups bill there is no VAT charged on the Shipping but VAT is charged on the value of th...

Hi Michelle,

 

Can you please confirm the value of the shipping and the remaining transaction? Do you know which VAT code has been applied to the item?

 

 

Not applicable

Re: On our Ups bill there is no VAT charged on the Shipping but VAT is charged on the value of th...

I have attached one of the bills. The value of the goods is $1073.74 USD.  We do not know the VAT code used.

 

 

 

UPS.jpg

QuickBooks Team

Re: On our Ups bill there is no VAT charged on the Shipping but VAT is charged on the value of th...

Thanks for getting back to the Community, @Michelle68.

 

Allow me to join in this thread and help guide you on how to view the information you need in QuickBooks Online (QBO). 

 

You can pull up the VAT Detail Report to show the VAT code you've used in the bill transaction. Then, you'll need to check each transaction to confirm the value of the shipping item that was added on the bill.

 

To pull up the report, here's how:

  1. In the left tab menu, click Reports.
  2. Type-in and select VAT Detail Report on the search tab.

You can check this article to learn more about the VAT Detail Report: What's the VAT Detail Report?

 

This should get the information you need. Feel me in if you have other questions about the VAT Detail Report. Wishing you and your business continued success. 

Not applicable

Re: On our Ups bill there is no VAT charged on the Shipping but VAT is charged on the value of th...

Hi, I am new to quickbooks and I'm lost with how to record the UPS bill attached above in the banking section attached below. The VAT is worked out on the value of the goods not on the total of the bill.

 

UPS split.jpg

QuickBooks Team

Re: On our Ups bill there is no VAT charged on the Shipping but VAT is charged on the value of th...

Hi Michelle68

 

We would be grateful if you can provide us with a breakdown of the UPS bill as we are unable to view the one you have attached.

It may be the case that you are unable to add the transaction from the banking screen and will have to enter it manually.

Not applicable

Re: On our Ups bill there is no VAT charged on the Shipping but VAT is charged on the value of th...

Hi John C

 


@John C wrote:

Hi Michelle68

 

We would be grateful if you can provide us with a breakdown of the UPS bill as we are unable to view the one you have attached.

It may be the case that you are unable to add the transaction from the banking screen and will have to enter it manually.



UPS.jpg

QuickBooks Team

Re: On our Ups bill there is no VAT charged on the Shipping but VAT is charged on the value of th...


Hi Michelle68

 

We presume the amount that was debited from your bank account was 677.44?

Not applicable

Re: On our Ups bill there is no VAT charged on the Shipping but VAT is charged on the value of th...


Hi @John C

 

Yes that's correct.

 

 

@John C wrote:


Hi Michelle68

 

We presume the amount that was debited from your bank account was 677.44?


 

Highlighted
QuickBooks Team

Re: On our Ups bill there is no VAT charged on the Shipping but VAT is charged on the value of th...

 

Hey Michelle68,

 

 

To record this, create a bill with the details below and then match this to the transaction in your Banking For-review tab. 

 

 

1) Go to the + icon > Bill and enter the suppliers name and the date of the invoice. Set the 'Amounts are' to 'Exclusive of tax'.

 

2) On the first line, enter the total amount of the net charges from the 'Net Charges' column minus the VAT, so 677.44 - 225.88 = 451.46 (you can enter this as one amount or on separate lines as per the invoice breakdown if you prefer) - with the vat code 'No VAT'

 

3) One the line below this, choose an expense account in the category drop-down, and enter the amount as 0.01 with 20% S VAT code

 

4) Enter another line below this with the same expense account with the amount of -0.01 and the Exempt (0%) VAT code

 

5) Scroll down to the Subtotal and overwrite the box beside 'VAT @ 20% on 0.01' with the VAT amount 225.88.

 

 

The total bill should total 677.44. Save & make payment against the bill, then match this in the Banking screen.

 

 

Thanks!

View solution in original post