Anyone else with the system error 'VAT Exception Report doubles the VAT on sales with Cash (Mixed mode) when "Report expenses on cash basis" is unticked' ?

Hello, Fenu. Let me share an update on the error in the VAT Exception Report.

I found an investigation currently in progress with the reference number INV-105231 upon thoroughly checking. Our product engineers are currently working on fixing the issue, and we anticipate having the fix implemented this week after validation.

However, I'd also like to share a workaround for filing your report and closing off the affected period. Here are the steps:

1. Go to VAT.
2. Find the tax period you need to adjust, then select Prepare Return.
3. Next to the entry you need to adjust, select Adjust.
4. Select the Adjustment date and the Tax rate.

• Select the Adjustment account for adjusting VAT. Choose an expense account if you need to increase the VAT due.
• Choose an income account if you need to decrease the VAT due.

1. Enter the Adjustment amount.
2. Enter notes in Memo, then select Save.

For additional information on this process, you can refer to this article: Create or delete a VAT adjustment in QuickBooks Online.

If you need to edit your VAT rates in QuickBooks Online, here's a helpful reference: Edit VAT rate in QuickBooks Online.

Feel free to reach out through this thread for any additional concerns with VAT in QBO. Looking forward to your replies in the comment section. Have a great day!