Vat Control not needed

usertom · ‎November 04, 2020

Hi, we are only a small LTD company, and are not VAT registered. VAT Control on chart of accounts has around -£300 in it, should this be £0 ? I have already turned off VAT and read nother questions about VAT control but nobody can seem to say how o make VAT control £0 or not applicable Any help appreciated

John C · ‎November 04, 2020

Hi usertom If you're not VAT registered we recommend that you change all the transactions to No VAT. You are not able to deactivate VAT however you can set the default tax rate to No VAT. Select the cog/gear icon > account and settings > advanced > accounting > default tax rate selection > No VAT > save.

We never advise to manually unreconcile transactions, we always advise to contact an accountant that uses QuickBooks and have them unreconcile the relevant periods.

View solution in original post

John C · ‎November 04, 2020

Hi usertom If there are amounts in the VAT control account this will be due to transactions having VAT codes applied to them. We recommend that you run a VAT liability report for all dates to locate the transactions.

usertom · ‎November 04, 2020

Ok thanks, just done that

do I now need to adjust all of the vat to vat zero ? I started doing that and it said it would cause problems with reconciling

if zero vat is the solution can I then just go to bank register abs change the C to an R on the entries causing the reconciliation issue ?

thanks

John C · ‎November 04, 2020

Hi usertom If you're not VAT registered we recommend that you change all the transactions to No VAT. You are not able to deactivate VAT however you can set the default tax rate to No VAT. Select the cog/gear icon > account and settings > advanced > accounting > default tax rate selection > No VAT > save.

We never advise to manually unreconcile transactions, we always advise to contact an accountant that uses QuickBooks and have them unreconcile the relevant periods.

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Vat Control not needed