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SL100
Level 1

VAT adjustments impacting balance sheet

Hi there, our vat transactions go to our main control account. We report certain countries VAT on separate returns so when i prepare the uk return i have to exclude these balances as reported separately. I put these reductions to the vat return as an adjustment in QB. This creates an automated journal by QB called VAT adjustments.  My thought process was to then journal this adjusted balance to other country control accounts but the VAT adjustments seem to still inflate the balance sheet, what do i do?

6 REPLIES 6
IamjuViel
QuickBooks Team

VAT adjustments impacting balance sheet

Hello there, @SL100.

 

Let me share additional information about how QuickBooks handles the changes you've made to your VAT-related transactions.

 

When you exclude the balances for the countries you're filling separately, decrease your taxable amount. It will show under Exception Amount column when preparing your next VAT returns. This is to ensure that no VAT collected or credits earned are missed or duplicated. You can run the vat exception report. This way you'd see the details of the changes made in QuickBooks. Here's how:

  1. Go to the Reports menu.
  2. Scroll down to the Manage VAT section.
  3. Double-click on the VAT Exception Report.

Lastly, you can create a journal entry to correct your balance. I'd recommend consulting with an accountant so you'd be assisted properly with reviewing your VAT setup in QuickBooks and the manual  adjustments you've made.

 

I've added these articles to give you more insights on how the VAT exceptions report works:

Get back to us here if you have other questions or concerns. I'm always here to help.

SL100
Level 1

VAT adjustments impacting balance sheet

Hello, thank you for responding.

Unfortunately I ran that report and it was empty - no entries  detailed. I am not sure what the next steps are, any advice would be greatly appreciated

JessT
QuickBooks Team

VAT adjustments impacting balance sheet

Hi there, SL100!

 

With the scenario you have, it would be best if we'll have visuals to it, so we can trace the transactions. Please contact our Support team during the usual business hours in the UK. That way, they can use a screen-sharing tool and guide you while you're both looking on the same page.

  1. Click on Help and enter something like VAT adjustment.
  2. If you get search results, type need human.
  3. Click on any of the results and click I still need a human.
  4. Click Contact Support Team.

If you have other questions, you can always go back to this thread.

SL100
Level 1

VAT adjustments impacting balance sheet

I did contact the support a month ago and no one could really help but i will try again...

SL100
Level 1

VAT adjustments impacting balance sheet

this isn't working no human option is appearing..

EmmaM
QuickBooks Team

VAT adjustments impacting balance sheet

Hello SL100, If you call 08082345337 our care team will be there to answer calls till 7 pm today.