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nfconsulting90
Level 1

Why is quickbooks online requiring me to add a VAT tax when i try to add transactions from my bank activity? I want to remove the option of having to add tax

 
23 Comments 23
RaymondJayO
Moderator

Why is quickbooks online requiring me to add a VAT tax when i try to add transactions from my bank activity? I want to remove the option of having to add tax

Nice to see you here in the Community, @nfconsulting90

 

When you sign up for QuickBooks Online (QBO), the region you selected is the country that associates with your Intuit login. It could be you've subscribed to the UK or global version and the tax tracking was turned on. This could be the reason why the system prompts you to add a VAT tax when adding transactions from your bank activity. 


To help check if your account is under UK or global version, you’ll need the assistance of our Customer Care Team. They have the necessary tools to verify your account’s region. Here’s how: 

  1. Go to the Help menu at the upper right.
  2. Select Contact Us.
  3. Enter your concern.
  4. Click Let’s talk.
  5. Choose either Get a callback or Start messaging.
  6. Type in your contact info.
  7. Select either Confirm my call or Send message

 

Once verified, you can cancel the account since changing its country is currently unavailable. Here are the steps: 

  1. Go to the Gear (Settings) icon at the upper right.
  2. Select Account and Settings.
  3. Go to Billing and Subscription from the left menu.
  4. In the QuickBooks section, click Cancel
  5. Complete the cancellation process. 

 

For detailed steps, go through this article: Cancel QBO Subscription


Once done, you can sign up for the US version of the program. Here's how: 

  1. Go to https://quickbooks.intuit.com/choose-country/. 
  2. On the North America tab, click United States. This will route you to the region’s website. 
  3. Scroll down the page, click Plans & pricing
  4. Choose the version of QuickBooks Online that you need.
  5. Select Buy Now
  6. If you have an existing QBO account, click Sign in beside Adding a company to an existing account?. If not, enter you email address and login credentials to create a new one.

 

To learn more about the signup process, here’s a great article you can refer to: Create or Add Another Company

 

After that, you can add transactions to your bank account register. Please make sure not to set up the sales tax feature in the program so it won't prompt you to add the tax. 

 

You can also connect your bank account to QBO. It lets you get an up-to-date view of your income and expenses without manually entering them. For more information about this, visit this article: Connect Bank and Credit Card Accounts

 

I'm just a comment away if you need further assistance. Have a great day, @nfconsulting90

nfconsulting90
Level 1

Why is quickbooks online requiring me to add a VAT tax when i try to add transactions from my bank activity? I want to remove the option of having to add tax

I don't see the option to chat or call. I do remember creating this account when I was in Qatar, could it have defaulted to the global option?

 

If I cancel my current subscription will I lose all my data? That would be devastating 

Charies_M
Moderator

Why is quickbooks online requiring me to add a VAT tax when i try to add transactions from my bank activity? I want to remove the option of having to add tax

Thanks for coming back, nfconsulting90.

 

Adding VAT tax is one of the features of UK or global versions of QuickBooks Online (QBO). Signing up for this would depend on the country or region selected.

 

On the other note, cancelling your QuickBooks Online (QBO) subscription will not remove your data until one year. Thus, you can still have access to your company file in a read-only access for one year from the date of cancellation.

 

Feel free to read through this article about canceling QBO subscription: Cancel your QuickBooks Online subscription or trial.

 

If you wish to go over this via phone, you can follow the steps outlined on the screenshot below:

 

Please don't hesitate to reach back to me if you have other questions aside from this. I'd be glad to answer them for you.

nfconsulting90
Level 1

Why is quickbooks online requiring me to add a VAT tax when i try to add transactions from my bank activity? I want to remove the option of having to add tax

Also, this just started happening a month ago.  This was not an issue for the past year. Why would that be?


 

katherinejoyceO
QuickBooks Team

Why is quickbooks online requiring me to add a VAT tax when i try to add transactions from my bank activity? I want to remove the option of having to add tax

Thanks for your quick response, @nfconsulting90. Let me chime in so I can help address your add VAT concern. 

 

As mentioned by @RaymondJayO, the reason for this prompt is because the Tax Tracking was turned on. Once this feature is enabled, it can't be undone. I'd suggest you select the Out of Scope of Tax so you’ll no longer need to apply VAT on your transactions. Here’s how:

 

1.    Go to the Gear icon at the top right.
2.    Click Account and Settings under Your Company.
3.    Select Advanced from the left menu.
4.    Choose the Accounting section.
5.    In the Default tax rate selection drop-down, choose Out of scope of Tax.
6.    Click Save, then Done

 

For future reference, you can read through our help article: Download, match and categorize your bank transactions in QuickBooks Online. It'll guide you on what to do after your bank and credit card download the transactions. 

 

Feel free to message us again if you have more questions. We're always delighted to help. 

nfconsulting90
Level 1

Why is quickbooks online requiring me to add a VAT tax when i try to add transactions from my bank activity? I want to remove the option of having to add tax

I have changed to out of scope but am still being asked to add tax.  I have attached a screen shot to show what I am looking at.  Please advise as I need to get this resolved ASAP

ChristieAnn
QuickBooks Team

Why is quickbooks online requiring me to add a VAT tax when i try to add transactions from my bank activity? I want to remove the option of having to add tax

Hi there, nfconsulting90.

 

Thank you for providing a screenshot to assist you further.

 

I'm here to provide additional information about removing the tax codes. When the sales tax feature is already turned on, you're no longer able to get rid of the tax codes option on the transactions. It will still show even if you selected Out of Scope.

 

Let me know if there's anything else I can do to help you succeed with QuickBooks.​​

nfconsulting90
Level 1

Why is quickbooks online requiring me to add a VAT tax when i try to add transactions from my bank activity? I want to remove the option of having to add tax

I’m sorry so what’s the resolution here since changing the tax settings didn’t work?

MaryJoyD
QuickBooks Team

Why is quickbooks online requiring me to add a VAT tax when i try to add transactions from my bank activity? I want to remove the option of having to add tax

Thank you for the response, @nfconsulting90.

 

If you have deactivated the Default tax rate selection from the Advanced tab in the Account and Settings, you can use the Out of scope setting when creating sales and expense amounts (transactions when go to the plus/create (+) icon). However, this does not affect your bank transactions.

 

What you can do is choose the No Vat from the Tax code drop-down to successfully add the bank transactions. Check the screenshot below:

 

I’m always here if you need further help or assistance by leaving a comment below. I’m always glad to help in any way I can. 

nfconsulting90
Level 1

Why is quickbooks online requiring me to add a VAT tax when i try to add transactions from my bank activity? I want to remove the option of having to add tax

How do I add that as an option?  Below is the screenshot of what im seeing.

ShiellaGraceA
QuickBooks Team

Why is quickbooks online requiring me to add a VAT tax when i try to add transactions from my bank activity? I want to remove the option of having to add tax

Hello nfconsulting90,

 

Let's check if you've turned off Out of scope or Exempt From VAT rates from the list. You can consider this as one of the reasons why you're not seeing this option. Let me guide you on how to view the Tax rates.

  1. In the left navigation menu, click Taxes.
  2. Click VAT at the top.
  3. Click the Edit VAT drop-down. Then, click Edit rates.
  4. Look for Exempt From VAT or Out of scope or No VAT codes. Make sure the switch button is On.
  5. Click Continue to save.

I've added some screenshots for you.

 

Please refer to these articles for more details about:

I've also added our page about VAT for some help articles for your future tasks.

 

Let us know anytime if you have more questions. We're always here to help.

 

 

nfconsulting90
Level 1

Why is quickbooks online requiring me to add a VAT tax when i try to add transactions from my bank activity? I want to remove the option of having to add tax

Why am i not seeing the same options as your screen?  Attached is what I see when i click the tax tab.  Really confused as to why we can't just have no taxes applied when we are matching bank transactions.  Please advise as we need to get our reporting out soon. Thanks!

BettyJaneB
QuickBooks Team

Why is quickbooks online requiring me to add a VAT tax when i try to add transactions from my bank activity? I want to remove the option of having to add tax

I appreciate the screenshot that you gave, @nfconsulting90.

 

For us to further investigate why you're not seeing the same options as the screenshots presented by my peer above, I suggest reaching out to our Customer Care Team. They can request a remote-viewing session to help determine the main cause of this issue.

 

I've also got here a link that contains more details on how does VAT works in QuickBooks for your reference: VAT FAQ's.

 

Please know that I'm still here to help if you have any other concerns. Thanks for coming and have a great day!

nfconsulting90
Level 1

Why is quickbooks online requiring me to add a VAT tax when i try to add transactions from my bank activity? I want to remove the option of having to add tax

I was told since I created this account while I was on a business trip in Qatar it set me up as a global account.  But why can't there be a way where I can just not have to apply tax to money I have received.  Please review attached screenshot where when I am matching invoice and reconciling difference with bank charges (expense) it still asks for some tax code.  I just want a way where I can put the tax (VAT or Illinois Sales) as un applicable and continue on with my business.  PLEASE help as customer service is saying I need to make a new subscription and I won't be able to migrate my current data which would be devastating 

AlcaeusF
Moderator

Why is quickbooks online requiring me to add a VAT tax when i try to add transactions from my bank activity? I want to remove the option of having to add tax

Thanks for getting in touch with us here in the Community, nfconsulting90.

 

I can see how important to you and your business to save time with adding transactions from Bank Feeds. Since you already followed all the necessary troubleshooting provided by my colleagues above, it would be best to seek further help from our QuickBooks Specialists.

 

One of them will be able to pull up your account and perform screen sharing to get this straighten out. Here's how you can reach them:

 

  1. Log into your QuickBooks account.
  2. Click the Help option in the upper-right corner, then select Contact Us.
  3. Enter your question.
  4. Choose Let's talk.

The screenshot below will serve as your visual guide:

 

 

Please reach out to me if you have further questions or concerns about the VAT tax. I'll be here to help.

nfconsulting90
Level 1

Why is quickbooks online requiring me to add a VAT tax when i try to add transactions from my bank activity? I want to remove the option of having to add tax

I have already called customer service and they are telling me I need to cancel this subscription and create a new account and I will lose all my current data. There has to be a simpler fix to this.

 

is there any way I can get a contact number for someone more familiar with quickbooks vs the generic customer care number because it seems they are not sure what to do. Thanks 

Jen_D
Moderator

Why is quickbooks online requiring me to add a VAT tax when i try to add transactions from my bank activity? I want to remove the option of having to add tax

It's nice to have you back, @nfconsulting90,

 

You don't need to create a new account to add transactions in QuickBooks Online. Setting up a zero tax rate and assigning them to the sales will do the trick. Perform these steps:

 

  1. From the left menu, choose Taxes.
  2. Tap the Edit [Tax Name] drop-down at the top.
  3. Pick Edit rates, then click on Add tax rate or Edit.
  4. Assign a zero rate for the tax.
  5. Hit Save when done.

Assign this tax in the Banking screen to successfully save the sales.

 

Refer to this article to know more about managing taxes in QBO: How do I set up sales GST/VAT rates and use them on forms? (International QBO)

 

Mention me anytime if you need additional help or questions with tax processing. I'll be more than glad to be of your assistance. Have a wonderful day!

nfconsulting90
Level 1

Why is quickbooks online requiring me to add a VAT tax when i try to add transactions from my bank activity? I want to remove the option of having to add tax

I have added a zero tax option.  Do you have a recommendation on how to resolve the issue where i am trying to resolve the difference from the invoice amount vs. what was collected? When we wire funds the bank automatically takes out a bank charge which is an expense.  attached is the example of the error i am getting. thanks

GarlynGay
Moderator

Why is quickbooks online requiring me to add a VAT tax when i try to add transactions from my bank activity? I want to remove the option of having to add tax

I have read the whole thread and wanted to help you get on the right track, nfconsulting90.

 

It is a requirement to add VAT rates to all bank transactions for a business that uses QuickBooks Online International. There's no option to turn to remove it.

 

There are two ways on how to handle bank charges on a deposit. The error tells us you need to specify a positive amount for the resolving transaction and a VAT. It is because the system can't calculate the amount with zero VAT rate and a negative amount.

 

The first option is to add the bank fee from the Bank Deposit page. Then, we can match the deposit from there.

 

To receive the invoice payment:

  1. Open the invoice and click on Receive payment.
  2. Select Undeposited funds account in the Deposit to drop-down option.
  3. Click on Save and close.

To deposit the funds to the bank account:

  1. Click on the Plus icon and select Bank Deposit
  2. Choose a bank account and enter the payment date.
  3. Select the invoice payment. 
  4. Scroll down to the “Add funds to this deposit” section to enter the fee as a new line item.
  5. Select payee (ex. the bank charging you). Then, select Bank Charges from the Account drop-down▼menu.
  6. Enter the fee as a negative number. For example, if the fee was $18, enter -18.
  7. Review the deposit total with the bank fee.
  8. Select Save and close or Save and new1.PNG

Go to the Banking page, and you can see the deposit shows a matched transaction. 

2.PNG

 

The second option is to manually match the bank transaction, edit the invoice to put a note that the bank charge has been taken out, then make an expense: 

  1. Go to the Banking page.
  2. Select the deposit and click on Find match.
  3. Select the invoice.
  4. Enter 8657 in the Payment box.
  5. Click on Save

2.PNG

Open the invoice and click on the Receive payment button. Put a note that this payment is for the bank charge for $18.00. 

1.PNG

 

Then, create an expense for the bank charge. 

 

2.PNG

 

On the other note, if your business is located in the US, you could have signed up for QuickBooks Online US version as it won't asks for a VAT rate for your bank transactions. This helps you file your tax returns accurately. Cancel the current account and transfer all transactions to the new one.

 

To export the data:

  1. On your QuickBooks account, go to the Gear icon and select Export.
  2. Select which data you'd like to export.
  3. Click on the Export to Excel button.

To import the data:

  1. Log in to the new account, then click on the Gear icon at the upper right.
  2. Under Tools, choose Import Data.
  3. Select the type of data that you'd like to import.
  4. Click Browse to select a file to be imported.
  5. Click on the Next button until finished.

For more information about importing data, you can check out these articles: Common questions about importing data to QuickBooks Online

 

Then, set up your new account completely. Please follow the steps below:

You can also find more help and tips about reconciling bank transactions in this link.

 

These will help you match your bank transactions. Keep on posting for any questions. We're here to help.

nfconsulting90
Level 1

Why is quickbooks online requiring me to add a VAT tax when i try to add transactions from my bank activity? I want to remove the option of having to add tax

I am doing the second option.  Please look at attached image to see error message I receive, it is telling me add tax for a bank charge???

BettyJaneB
QuickBooks Team

Why is quickbooks online requiring me to add a VAT tax when i try to add transactions from my bank activity? I want to remove the option of having to add tax

Thanks for keeping me updated about the steps that you've tried, @nfconsulting90.

 

The steps on how to reconcile a bank account shared by my colleagues above should work. However, to identify the reason behind the error that you received, I suggest reaching back out to our  QBO Technical Team.

 

Our engineers can run diagnostics into your account and help narrow down to the bottom of this issue. They can also generate an investigation ticket if necessary.

 

If you have any questions about QuickBooks or anything else, please let me know by adding a comment below. I'm here to provide further assistance. Have a wonderful day!

nfconsulting90
Level 1

Why is quickbooks online requiring me to add a VAT tax when i try to add transactions from my bank activity? I want to remove the option of having to add tax

I have reached out to customer care multiple times now, they have told me I need to reach out to the global team since I had (unknowingly) set up a global account while I was on a business trip in Qatar.

 

Do you have the contact info for that team and will they be able to help resolve this issue for me?

MirriamM
Moderator

Why is quickbooks online requiring me to add a VAT tax when i try to add transactions from my bank activity? I want to remove the option of having to add tax

Hello, nfconsulting90.

 

To contact our Global Customer Care Support Team. Here's how:

  1. Go to https://help.quickbooks.intuit.com/en/contact.
  2. Select a category under What can we help you with?.
  3. Scroll down the page, click Send Email.
  4. Enter your Email, First and Last Name, Question, and Phone Number.
  5. Hit Ask Your Question.

Reach out to me if you have questions or any other concerns. I’m always here to help. Have a wonderful day!

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