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Level 1

The VAT on my purchase invoices is often different to the calculation made by Quickbooks. How can I override this so my VAT return is correct?

 
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Moderator

The VAT on my purchase invoices is often different to the calculation made by Quickbooks. How can I override this so my VAT return is correct?

It's great to see you here, @james70,

 

If the system is calculating a different amount for your taxes, you can edit the tax rate or add a new tax item in QuickBooks Online. Here's how:

 

  1. Go to the Taxes menu then select VAT tab.
  2. Find and lick the Add tax button.
  3. Enter the Tax Name and Description.
  4. Under Tax Agency mark the Purchases box then add the correct rate.
  5. Enter all the required information, then hit Save.
     

You can delete and recreate the invoice then apply the correct rate.

 

For past invoices, you can adjust your VAT Liability by following the steps below:

 

  1. From the Taxes menu, select VAT.
  2. Click on Prepare VAT then pick Adjust.
  3. Enter the Adjustment Date and VAT Rate.
  4. Pick the Adjustment Account ▼ drop-down menu and choose an account.
  5. Add the amount of the adjustment.
  6. Add a memo to describe the adjustment then press Save.

I'm enclosing this article to help you manage your VAT in QBO: VAT: Getting Started

 

If you have any questions about this or anything else in QuickBooks, let me know in the comment. I'll be right here to help any time. Have a lovely week!

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Level 2

The VAT on my purchase invoices is often different to the calculation made by Quickbooks. How can I override this so my VAT return is correct?

On the Enter Bill window, change to "Amount Exclusive of VAT" and enter the net figure from the purchase invoice. VAT will be calculated by QBs and if doesn't agree with the supplier bill (normally out by a penny or two), you can manually edit the VAT amount. The total should now agree to the purchase invoice.

 

However, be aware that if you should re-open the invoice later to make changes (any edits) and "Save" the bill, QBs will recalculate the VAT and you will need to manually alter the VAT again.