Thanks for joining us here in the Community, shahbazk1987@gma.
Allow me to provide clarifications regarding assigning a VAT code to your transactions in QuickBooks Online.
The system will only allow you to track taxes on the expense, checking, and income accounts. However, utilizing the Accounts Payable or Accounts Receivable type of accounts isn't available.
To get your work done, you'll need to create an invoice or a bill so you can allocate a VAT code to the transaction. This way, it will be added to the appropriate bank account and will help show the tax amount you've paid.
For your reference, I'm also adding here some links about adding and removing the VAT rates or sales taxes on your forms in QBO:
Let me know if you need additional information by clicking the Reply button below. I'm always right here to assist you. Take care!
I'm here to answer your follow-up question, @hahbazk1987@gma.
Currently, there isn't a way to delete a tax agency because we want to preserve your data integrity in QuickBooks Online (QBO). It also seems like you only have one tax rate under that agency based on your scenario. I'd first suggest deactivating that VAT code so it won't appear in bank reconciliation. I'll guide you how.
The screenshot below shows you the last three steps. For the detailed instructions, see this article's Deactivate tax rates section: Tax Centre Overview.
The second option is to select Out of scope of Tax from the Amounts are drop-down menu when making deposits in bank reconciliation. This way, the VAT column, and its codes won't display on the transaction.
Once done, you can proceed with reconciling your account in QBO to ensure it matches your bank statement. Thus, I recommend visiting this website: Reconcile Workflow. It contains more details about starting, fixing any differences, and completing the reconciliation process.
I'm here anytime you have other concerns. Keep safe always.
I'm here to help remove the error, shahbazk1987@gma.
Let's try one more step to fix this issue by adding and saving the deposit to a different account. Then, go back and edit it using the correct account.
If the same issue persists, I recommend contacting our QuickBooks Online Support Team. They can further investigate why it's asking for a VAT code when making a bank deposit.
Here's how to get in touch with our support:
Stay in touch with me on how the contact goes by commenting below. I'm always right here whenever you have follow-up questions.
Thank you and stay safe!
Thanks Mary, but this is a very lengthy solution, I have more than 300 transactions in my bank feed for reconciliation, I can not individually change the account of every transaction.
I think this is a bug in QuickBooks online, where it is asking VAT Code for Accounts Receivable deposit, and when I provide Zero Vat Code (0%) it gives that error that VAT can not be tracked on Accounts Receivable and Accounts Payable.
Thanks for getting back to us and sharing your insights about the issue, shahbazk1987@gma,
In order to look into this further, you can follow MaryLandT's suggestion to contact our Support Team. They are the ones who can check if this problem is cause by a system bug and can provide other suggestion if you don't want to edit the transactions one at a time.
I'm also adding the steps to contact us below:
Let me know how the call goes as I want to make sure you're taken care of. I'm also here if you need additional help with QuickBooks. Have a good one!
Hi there, sl-wong-bettergr.
Aside from the Help button, you can also click this link: https://help.quickbooks.intuit.com/en/contact.
There should be contact options when you follow the steps shared by my colleagues. You may also perform some troubleshooting steps to fix issues unusual behavior caused by a browser.
Let's start by using an incognito window. From there, go to the Help button to see if you can now see the contact options.
I'll be here if you have more questions. Wishing you all the best!