Unassigned VAT amounts when filing MTD manually

JordanJim · ‎May 13, 2020

Hi all, I'm running QB Desktop Premier 2016, using the Avalara bridging software to file VAT since MTD came in last year. I was previously filing through QB so the VAT entry was made automatically.

My question is how to assign the VAT payment to the VAT account manually? I'm sure that I've been doing it wrong as I've been writing a cheque to the VAT Liability account, but this is showing as an unassigned amount so the VAT owing on the VAT100 report is just accumulating instead of showing the accurate figure each quarter. What should I be doing instead so that Quickbooks records the payment properly?

katherinejoyceO · ‎May 18, 2020

Thanks for coming back for more support, @JordanJim. I understand the urgency to record your VAT payments in QuickBooks Desktop.

Since the VAT payment still showing up as an unassigned VAT payment even after following my peer's recommendation, I'd suggest you contact our QuickBooks Desktop Support team.

That way, they can take a closer look at the problem using the screen-sharing session, and help you find a resolution. They can also assist you in submitting a request to investigate the issue whenever necessary.

For future reference, read through this article should you need to learn more about how to submit a VAT return to HMRC - MTD for QuickBooks Desktop.

Know that we're always delighted to help in any way we can if you have more questions. Stay safe.

View solution in original post

Angelyn_T · ‎May 13, 2020

Thank you for reaching out to us here on the Community page, @JordanJim.

If the VAT return is not recorded in QuickBooks, VAT payment should be recorded to an expense account. Do not use the default VAT accounts created by QuickBooks if the VAT return isn't filed yet.

Just in case you need additional information about VAT e-filing and Making Tax Digital, read this article.

Post again if you have any other questions. I'm a post away to help. Have a good day!

JordanJim · ‎May 18, 2020

Thanks for the reply. I have tried doing as you suggest and have set up an expense account for VAT payments. However, when I write a cheque to this account it is still showing as an unassigned VAT payment, so the VAT 100 report that I use to fill out the Avalara VAT boxes is just ever accumulating with the amount that I apparently owe, with the unassigned payments amount also accumulating.

I undid my previous bank reconciliations and voided the previous VAT cheques, thinking that I could then record a payment from the Manage VAT/VAT Accounts and Payments screen, which would (hopefully) then link the payment to the correct account, like it did previously when I was filing through Quickbooks. I can't see a way of doing so though, without actually filing the VAT return.

Instead of writing a cheque for the VAT payment, do I need to use the 'Adjust VAT Owing' box on the 'Manage VAT Accounts & Payments' screen and put the adjustment account as the VAT Payments expense account. Is this correct or am I going to mess things up even more?

katherinejoyceO · ‎May 18, 2020

Thanks for coming back for more support, @JordanJim. I understand the urgency to record your VAT payments in QuickBooks Desktop.

Since the VAT payment still showing up as an unassigned VAT payment even after following my peer's recommendation, I'd suggest you contact our QuickBooks Desktop Support team.

That way, they can take a closer look at the problem using the screen-sharing session, and help you find a resolution. They can also assist you in submitting a request to investigate the issue whenever necessary.

For future reference, read through this article should you need to learn more about how to submit a VAT return to HMRC - MTD for QuickBooks Desktop.

Know that we're always delighted to help in any way we can if you have more questions. Stay safe.

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Unassigned VAT amounts when filing MTD manually