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NainaG
Level 2

I need to reconcile the VAT control account on QBO as at 31Dec19 to the Q4 2019 UAE VAT payable as per the filing.

Ideally, any entries passed post the filing pertaining to 2019 would show up on the exception report and could be the reason for difference. I tried adjusting that but still have a difference that I am unable to figure out. Looking for an easier option to find differences other than dng a line by line reconciliation for all of 2019.
11 Comments
RenjolynC
QuickBooks Team

I need to reconcile the VAT control account on QBO as at 31Dec19 to the Q4 2019 UAE VAT payable as per the filing.

Hello, NainaG.

 

I'll share some steps to fix the reconciliation difference. Let's make sure to review your opening and beginning balances to know that they are accurate.

 

Next, check your Ending balance and Ending date. The information should match your bank statement. Then, go to the Banking page and look for any un-reviewed transactions. Make sure to match and categorise them because this will affect the opening balance.

 

If you no longer have the difference, reconcile the account again. Here's an article for the instructions: Reconcile an account in QuickBooks Online.

 

Otherwise, follow the steps in this article: Fix issues when you're reconciling accounts in QuickBooks Online.

 

I'll be around if you need more help with the reconciliation. 

NainaG
Level 2

I need to reconcile the VAT control account on QBO as at 31Dec19 to the Q4 2019 UAE VAT payable as per the filing.

Hi Renjolyn,

 

We do not have our bank account setup with QBO yet for auto feeds as QBO allows only specific bank accounts to be linked here in UAE.

 

And I am looking at reconciliation of the VAT control account with the VAT return.

Not sure how what you have said shall help.

 

I have already manually reconciled my bank and all other accounts as at 31dec2019 to confirm their validity.

AlcaeusF
Moderator

I need to reconcile the VAT control account on QBO as at 31Dec19 to the Q4 2019 UAE VAT payable as per the filing.

I appreciate you for getting back to us here in the Community, @NainaG.

 

Let me share some clarification about reconciling an account in QuickBooks Online.

 

Currently, you only use the Reconcile feature to reconcile bank and credit card accounts in QuickBooks. You mainly perform the process to match with the statements coming from your financial institution.

 

The VAT Control account only collects all the transactions with the VAT element. Once you file the payment or refund, it will post to the vat suspense to clear it.

 

To figure out the difference between the figures, you'll need to review each transaction from a specific period. I suggest running some transaction reports available to help you filter the data you need.

 

Also, it would be best to consult an accountant or tax professional for expert advise about how to handle the account. By doing so, we'll be able to ensure your books are accurate and error-free.

 

For additional reference, I've attached some articles you can use to learn more about reconciling an account, as well as some frequently asked questions about VAT:

 

Please know that the Community has your back if you need assistance. Feel free to post a question, get answers, share tips, ideas, and more. Wishing you and your business continued success.

NainaG
Level 2

I need to reconcile the VAT control account on QBO as at 31Dec19 to the Q4 2019 UAE VAT payable as per the filing.

Hi Alcaeus,

 

I am a tax accountant myself and I know a line by line reconciliation is one solution to find out. Was just looking if there are any easier options to search on what may be the error. I am new to QBO and I feel the VAT guidance from QBO for UAE VAT has been very limited.

 

 

BettyJaneB
QuickBooks Team

I need to reconcile the VAT control account on QBO as at 31Dec19 to the Q4 2019 UAE VAT payable as per the filing.

Hello there, @NainaG.

 

Allow me to share some clarifications regarding the option to review errors when reconciling your VAT control account in QuickBooks Online.

 

The solution shared by my peer AlcaeusF above, which is to review each transaction from a specific period, is the only way to look for any issues on your entries. At this time, we don't have specific functionality that can automatically determine problems upon settling your VAT data.

 

Please know that our developers are continuously finding and considering new functions to be added to the system. We're committed to developing simple, intuitive software that includes features to meet our customers' needs.

 

You may visit our QuickBooks Online blog site regularly, to stay in the loop with our recent happenings including product enhancements. 

 

For your reference, I'm also adding here some articles that you can visit about filing your taxes and on what are the different reports that you can pull up in QuickBooks Online:

Let me know if there's anything else that you need about this or with QuickBooks. I'll be around to lend a helping hand. Have a good one!

NainaG
Level 2

I need to reconcile the VAT control account on QBO as at 31Dec19 to the Q4 2019 UAE VAT payable as per the filing.

HI there..thanks for your response. What are the auto generated entries to the VAT control account ? Am I correct in stating that when we add invoices , bills etc, the corresponding VAT gets added/deducted from VAT control account and is offset with thew auto entry generated when we file the tax. We are usually in a VAT payable position and hence the auto entry generated is to debit VAT control and credit VAT suspense when we file the VAT return. Would really expect a better response to the VAT queries raise here in UAE. I have been offered the above links as a solution time and time again but they do nothing to explain the VAT feature on QBO.

MaryLandT
QuickBooks Team

I need to reconcile the VAT control account on QBO as at 31Dec19 to the Q4 2019 UAE VAT payable as per the filing.

Hello there, NainaG,

 

I can clear things out for you. Any transaction you've created that is taxable will appear in the VAT control account on your register.

 

Invoices will increase and bills will decrease the balance on your this account. Once you file your returns, QuickBooks Online tracks them using a journal entry and will deduct your tax liabilities. See the attached screenshot below for your visual guide.
VATcontrolaccount.PNG

 

Learn more on how QuickBooks tracks your sales tax through this article: How do I set up sales GST/VAT rates and use them on forms? (International QBO).

 

Let me know if you need additional information by commenting below. I'm always right here to help.

NainaG
Level 2

I need to reconcile the VAT control account on QBO as at 31Dec19 to the Q4 2019 UAE VAT payable as per the filing.

Hi Maryland,

 

I had a quick query I needed some help with. So, I realised beginning 2018 when VAT was newly introduced we had received a tax invoice from one of our insurance suppliers charging us VAT for the portion of the insurance term due. The actual invoice was already prepaid the year before in 2017 and what was payable now was just the VAT portion. So, since i did not have an exact bill to post, I posted a journal entry directly to debit the VAT control account and credit the Bank statement.

 

My concern is when I do the VAT filings I run the VAT detail report and the exception report. I can't seem to figure out this transaction in both. Is this right ? It did not reflect in either the VAT detail or exception report ?

Catherine_B
QuickBooks Team

I need to reconcile the VAT control account on QBO as at 31Dec19 to the Q4 2019 UAE VAT payable as per the filing.

We can check the date of the transaction, NainaG.

 

The date of the Journal entry matters as it is its basis in posting it on your VAT return. After reviewing and updating the entry, you can follow the steps provided by my colleagues AlcaeusF and MaryLandT.

 

If everything looks fine and you still get the same thing, I suggest getting in touch with us so we can further investigate. 

 

Here's how to contact us:

  1. Go to the Help ( ? ) menu and enter talk to a human.
  2. Click the Contact Support Team option. 
  3. Select the Contact Support Team (24/7) link.
  4. Enter a brief description of your concern. Then, click Let's talk.
  5. Click Start an email.

Feel free to post your questions here if you need more help. You take care always and have a great day!

JudeP
Level 1

I need to reconcile the VAT control account on QBO as at 31Dec19 to the Q4 2019 UAE VAT payable as per the filing.

Hi,

 

I am in a similar position reconciling the VAT control with the VAT return and am looking for some extra reports to help with a reconciliation, or a transaction number that would be easy to export into excel, but I can't see either option.

 

The VAT return is on a cash basis and the VAT control is on an accrual basis.  Therefore I always have entries in the VAT control that do not appear in my VAT return.  I am looking for a report that would help reconcile the difference.

 

As always - errors are made and sometimes journals are incorrectly posted.  To always do a line by line reconciliation is very time consuming with a high volume account - what reports or features does qb have to help?

 

Many thanks

 

FritzF
Moderator

I need to reconcile the VAT control account on QBO as at 31Dec19 to the Q4 2019 UAE VAT payable as per the filing.

Thanks for joining this conversation, @JudeP.

 

Currently, QuickBooks Online (QBO) doesn't have a report that will show the difference between the VAT control and return. However, the system has various VAT reports that you can check. This can be done by going through the Reports menu at the left pane. Then, scroll down to the Manage Vat section.

 

I can see how having this option would be helpful for you and your business. Rest assured that I'll pass along your suggestion to our Product Developers. They're always looking for ideas to consider on how to improve QBO.

 

In the meantime, I recommend visiting our Blog site. This is where we share recent happenings and future developments, such as updates to newly added features.

 

Just in case, I'll add this article for future reference: VAT Feature Update FAQ.

 

Reach out to me in the comment section below if you have any other issues or concerns. I'm always here to assist. Take care and have a great day!