VAT 100 and equity payments

Lee100 · ‎September 30, 2022

I've just started using Quickbooks and need to submit my first VAT 100 return. Not much has gone on in the account, but I've paid in some funds as initial owner's equity. I've set up myself as a supplier and an Owner's Equity account to categorise the payments.

These payments are unexpectedly showing up in the VAT 100 under 'Box 6 Net value of sales'. They're not sales. I know bookkeeping is deliberately difficult to understand, but should owner's equity show up on the VAT 100 return? If not, do I have to manually remove it or re-categorise it in Quickbooks?

paul72 · ‎September 30, 2022

Hi @Lee100

I'm not sure book-keeping was designed to be deliberately difficult but it is sometimes an amusing side-effect

You're right - these amounts should not be on the VAT Return.

You've probably entered with VAT Code Z=0% or Exempt?

Use VAT Code NOVAT & they'll be ignored for VAT purposes.

Hope this helps.

View solution in original post

paul72 · ‎September 30, 2022

Hi @Lee100

I'm not sure book-keeping was designed to be deliberately difficult but it is sometimes an amusing side-effect

You're right - these amounts should not be on the VAT Return.

You've probably entered with VAT Code Z=0% or Exempt?

Use VAT Code NOVAT & they'll be ignored for VAT purposes.

Hope this helps.

Lee100 · ‎September 30, 2022

Bang on!

It's kinda obvious when you're shown, and a newbie error.

All good now though, thanks.

Kurt_M · ‎September 30, 2022

Hello there, @Lee100.

I'm glad that you're able to get the information that you need here in the Community. If you have any additional QuickBooks-related concerns, know that you can always post here again. Rest assured, I've got you back and I'll be happy to help you out again.

Take care, and enjoy your weekend!

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VAT 100 and equity payments