VAT Journals to VAT Account and VAT 100 account

Hi andyjacobs, we do not advise posting directly to the VAT control account, this is used internally to track VAT on open transactions. Instead, a VAT code should be selected on the journal line against the relevant account. If you're unsure how to enter this, we'd recommend reaching out to your bookkeeper/accountant for support.

Hi Georgia, many thanks - I can now see how to post a journal for normal purchase/sale using net amounts and tax code (I succeeded with the T codes).  However, I need to write off purchase VAT each quarter as our business is partially exempt. An example journal I would post is

dr irrecoverable VAT £5000 (to P&L)

         cr VAT control              £5000 (Balance sheet and VAT 100, box 4)

I cannot see how I am able to do this.  I am ACCA qualified.

This is not a normal VAT posting on a purchase or a sale and has to be calculated each quarter as a write off against the input tax a business would normally claim.  This is because much of our turnover is VAT Exempt.

Who should I ask about resolving this please?

Many thanks,  Andrew

Hi Andy, we're unable to give accounting advice so you would need to contact an accountant or if there is a member of the communtiy can offer to help with this we open it up for suggestions. 

Hi Ashleigh,

Thanks for your e-mail.  I was not asking for accounting advice - I am a qualified certified chartered accountant.  I am just asking how to process the transaction on your system!

Many thanks,

Andrew

Hi Andrew

Did you get anywhere with this? I am having a similar issue I think. When I filed the last VAT return, I needed to post a journal for £2,500 as unrecoverable VAT to the expense account. QB has automatically posted it to my bank account instead! 

I've just realised this, and now cannot remember exactly what I did when completing the VAT return. But I can't see how the automatic journal is generated or how you change what code it goes to.

I've deleted that incorrect journal and I guess can post the correct one manually...

Thanks

Kat

Did this ever get resolved? I'm having a similar issue wanting to post a VAT journal (on the advice of our accountant) to record reverse charge VAT and need to adjust box 1 only of our VAT return. 

I'm having to post an adjustment direct to the VAT control account. Similar to the original poster, I'm a qualified accountant, I know what needs to be done, but I can't figure out how to do it Quickbooks.

Did anyone get an answer to this as I need to account for partial exemption on the VAT return and have not found a way of doing it.

Hiya. I asked QB help directly and they essentially said that QB couldn't do what I needed it to do (one-half of a reverse charge VAT as we're VAT exempt on some projects but still need to reverse charge the VAT on EU purchased services - all checked out with a VAT expert). In the end I manually adjusted it in the VAT return using this: https://quickbooks.intuit.com/learn-support/en-uk/help-article/report-management/create-delete-vat-a...

As this is what I needed to do - a VAT expense and an adjustment to the VAT and had confirmed with my VAT expert that this was OK. 

I don't know if this would work for what you need - maybe try posting a separate question and see if QB can help you. 

No - similar to the post below, when I looked into this, it seems that accounting for partial exemptions is not something QB (or most other software) will be able to do. 

I do all the partial exemption calculations in a separate sheet so I know how much is unrecoverable. When I'm doing the VAT return in QB, I post an adjustment against box 4 to the unrecoverable VAT account. It seems to work okay - the tax owed figure is correct, and the unrecoverable VAT charge is correct.