VAT Partial Exemption and VAT100 report

Uniform99 · ‎May 30, 2018

Hi

I've been looking into ways of dealing with partially exempt VAT but struggling to find a right solution on how to reflect them on VAT100 Quickbooks Online.

Part of the business supplies are exempt and I cannot claim back 80% VAT on the overheads. I posted all these expenses with zero VAT and then tried to claim 80% through posting a journal Dr VAT Control £ CR Expense account £ but no claim is appearing on VAT100 report.

It would be very helpful if you could please shed some light on this.

Thanks

Ashleigh1 · ‎April 02, 2020

Hello Modern Taxation,

So QuickBooks online doesn't directly support partial exemption VAT returns. However, you could input the transactions into QuickBooks with the standard VAT codes and then do an adjustment (however we advise that you seek advise from accountant to establish if this method is acceptable) or you can do the calculation outside of QuickBooks using Excel and use the bridging tool on HMRC website to submit the return to HMRC in accordance with MTD.

View solution in original post

Anonymous · ‎May 30, 2018

Hi Uniform99,

Welcome to Community.

In order for any transaction to show on VAT reports such as the VAT 100, it would need to have a VAT code associated with the transaction itself.

If you have entered a journal to debit VAT Control and credit the expense account without assigning any VAT codes on the journal itself, this transaction will not pull to the VAT 100 report at all.

Have a look at the transaction and let me know if you have any further queries

Modern Taxation · ‎April 02, 2020

Has anty one found a way to do this, this,thanks

Ashleigh1 · ‎April 02, 2020

Hello Modern Taxation,

So QuickBooks online doesn't directly support partial exemption VAT returns. However, you could input the transactions into QuickBooks with the standard VAT codes and then do an adjustment (however we advise that you seek advise from accountant to establish if this method is acceptable) or you can do the calculation outside of QuickBooks using Excel and use the bridging tool on HMRC website to submit the return to HMRC in accordance with MTD.

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VAT Partial Exemption and VAT100 report