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pev
Community Contributor **

FRS VAT using quickbooks online...

So I'm a bit miffed about being railroaded into moving to QuickBooks online after support for my QuickBooks Pro was discontinued and no equivalent product now being available in the UK any more... Grumbles aside, I was told it should have all the same functionality I was using before. (conveniently leaving out the lack of custom invoice stationary at the time or ability to print in UK standard A4...!) 

 

Anyway, I finally got round to doing my VAT submission and it turns out that migrating my company file didnt migrate across FRS being enabled (could have been a big problem...!) Now I've spotted that, reading the help it appears that because I'm on the FRS VAT you actually cant submit FRS VAT returns via QuickBooks like you can on QuickBooks desktop... So, I'm trying to follow the instructions to do this and I'm not sure I understand what QBO is doing differently to QBP...

 

I've been experimenting doing some tests using an empty period and a single transaction trying to understand what's going on. I've set up a single, paid invoice in the period for £230 Net with £46 VAT. I've enable FRS at 16.5% and I'm using a Cash VAT Accounting scheme.  

 

If I click "Taxes" > "View reports" > "VAT 100 Report" for the period I see what I'd expect : 

 

 

Box 1 VAT due on sales and other outputs                       45.54
Box 2 VAT due on acquisitions from other EC Member States       0.00
BOX 3 TOTAL OUTPUT TAX DUE                                    £45.54
Box 4 VAT reclaimed on purchases                                0.00
BOX 5 NET VAT TO PAY (OR RECLAIM)                             £45.54
Box 6 Net value of sales                                      276.00
Box 7 Net value of purchases                                    0.00
Box 8 Net value of supplies to other EC Member States           0.00
Box 9 Net value of acquisitions from other EC Member States     0.00

FRS Cash - Flat rate value:16.50% Wednesday, 3 October 2018 09:48 am GMT+01:00

 

So far so good.

 

However, the header banner for the "Taxes" page shows the following :

 

                                 £469.49
                         xx/xx/xxxx - xx/xx/xxxx

         £45.54         -       £-423.95      -      £0.00
   COLLECTED ON SALES      PAID ON PURCHASES      ADJUSTMENTS

 

and when I do a "prepare return" I get : 

 

 

                                                                             Open          Total
Amount transactions amount VAT due on sales and other outputs Box 1 £45.54 £0.00 £45.54 Adjust VAT due on acquisitions from other EC Member States Box 2 £0.00 £0.00 £0.00 Total output tax due Box 3 £45.54 VAT reclaimed on purchases Box 4 £0.00 £-423.95 £-423.95 Adjust Net VAT to pay (or reclaim) Box 5 £469.49 Net value of sales Box 6 £276.00 £0.00 £276.00 Net value of purchases Box 7 £0.00 £-2,238.86 £-2,238.86 Net value of supplies to other EC Member States Box 8 £0.00 £0.00 £0.00 Net value of acquisitions from other EC Member States Box 9 £0.00 £0.00 £0.00 Gain/Loss by FRS £0.46

 

QuickBooks Pro didn't do this, I cant find any reference to "open transactions" or "paid on purchases" and I can't see where this value of £-423.95 has come from (there's no link in any of the reports I can find). All I can think of is that VAT codings I've used (or not used) are being treated differently by QBO to QBP but I can't see where I'm supposed to go from here.  I think I should probably just do my return using the amounts shown as that makes sense and adds up to me but then if I manually submit and pay that, how do I enter that back into QuickBooks? Also I think ultimately I need to understand whats going on though to make sure that I'm not submitting something  incorrect!

 

I did have a scan through the "VAT Liability" account to see if I could work out whats going on ... 

  • All cheque entries show as a decrease of £0.00 except a valid capital purchase under FRS rules
  • All increases shown are invoices from "accounts receivable"
  • Other than that, all entries are split entries created by normal vat submissions previously

So I cant see  what purchases are being referred to here...

Solved
Best answer 10-05-2018

Accepted Solutions
pev
Community Contributor **

Re: FRS VAT using quickbooks online...

So for posterity for anyone else that comes across this, the problem was due to a few things. Firstly it seems that QB Pro and QBO have different sets of VAT codes so I needed "refreshing" to add the codes for QBO. Once that was done the same thing was present though. 

 

What happened was that my QB Pro company file was configured to use both flat rate vat and cash vat accounting but these settings had not migrated across. Id re-set them myself but what apparently needed to be done was to re-set them using the date 1/1/1970 to retrospectively fix some internal magic...! 

7 REPLIES 7
QuickBooks Team

Re: FRS VAT using quickbooks online...

Hi pev,

 

I have an idea as to what's going on here, when you've migrated over, your standard codes you've been using on desktop aren't working properly on QBO. This is a common thing, most accounts end up with QBO Codes, instead of QBP codes in their books. I know you've been speaking to my colleague EdwardR on another post about your reporting, i suspect that your reporting is not calculating properly either because of the codes in use.

 

Can you try giving us a call up and select the option for VAT or Payroll - and query us correcting the VAT Codes on your books. We need to escalate to our Tier 2 support team to have this done.  You'll have to go back and correct the transactions in the Quarter you're trying to submit with the new VAT Codes but both your reports and your calculations on the FRS will all work properly.

 

Our contact details can be found here: - https://quickbooks.intuit.com/uk/contact/

 

Thanks,

pev
Community Contributor **

Re: FRS VAT using quickbooks online...

Hi James,

 

Thanks for the response - that sounds entirely plausible! It seems so far that the migration process really isn't quite as smooth as it I would have hoped...

 

Do you know what the appropriate codes to use for purchases / expenses is when using FRS? Looking at whats there, it seems to be a mix of "O 0%", "OOS - Inactive" (which looks like a problem!) and "No VAT" which might be relevant? It also looks like QBO has a feature where there's "VAT Reclaimable" box which wasn't in pro 2015... (which looks to be not set in mine) I've tried setting all the cheques and expenses in the period to "No VAT" which removes them from the VAT Liability account as one might expect, but the problem is still the same so I wonder if things outside that VAT period are affecting it.

 

Whats annoying is that Looking at the "VAT Liability" account history via chart of accounts, the "VAT" field of the table view shows as completely blank (even though entries have their VAT fields set) and you have to edit each entry individually to see what it's set to...  

 

Ill try and give the support guys a call tomorrow and see if they can get anywhere with it (although Ill have to borrow a different computer to use as the screen share intuit uses won't run on the latest Mac OS...!)

 

QuickBooks Team

Re: FRS VAT using quickbooks online...

Don't worry too much, currently you might not have the right code. When we refresh your Codes your correct ones will be there. You will commonly use one titled "20% S" for standard 20% VAT on purchases.

 

If you need to get the advisor to verify anything with me, i'll be in the office from 12.

 

Thanks,

pev
Community Contributor **

Re: FRS VAT using quickbooks online...

So for posterity for anyone else that comes across this, the problem was due to a few things. Firstly it seems that QB Pro and QBO have different sets of VAT codes so I needed "refreshing" to add the codes for QBO. Once that was done the same thing was present though. 

 

What happened was that my QB Pro company file was configured to use both flat rate vat and cash vat accounting but these settings had not migrated across. Id re-set them myself but what apparently needed to be done was to re-set them using the date 1/1/1970 to retrospectively fix some internal magic...! 

QuickBooks Team

Re: FRS VAT using quickbooks online...

Hi Pev,

 

Thanks for sharing your resolve - it's a really useful thing to have on the community for any other Flat Rate customers to refer too in-case they come across a similar issue.

 

With the internal magic fixed, are your reporting now showing correctly?

 

Thanks,

pev
Community Contributor **

Re: FRS VAT using quickbooks online...

Yep, looks like its correct now for VAT 100 reports and calculations for submission. I still cant see old submitted returns though although someone from the desktop team is reply to that so going to see if I can do exports from there so it doesn't matter any more...

QuickBooks Team

Re: FRS VAT using quickbooks online...

Hi Pev,

 

I'm glad to hear you are now getting the correct on your VAT 100 reports. You can't see your old submitted returns from past software, which is as designed at the moment. Please make sure you put feedback through https://feedback.qbo.intuit.com/ to change this. It's something i have suggested myself in the past, so keep suggesting it - please! Smiley Happy

 

I'll leave my colleague Chris to continue to work on your desktop concerns; and if you have any questions by all means give us another message.

 

Thanks,