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Level 3

Removing a VAT code from a journal

We have some software which imports transactions into a journal entry in QuickBooks, but it has added a VAT code when historically we never added a VAT code as it wasn't relevant.

 

However, I want to remove the VAT code from the row entries of the journal but it does not seem possible to do this- can I edit it so the rows are blank in the VAT box? 

 

Thank you. 

3 Comments
QuickBooks Team

Removing a VAT code from a journal

Taxes must not be enabled in QuickBooks for the VAT codes not to show up when importing transactions, lkoups.

 

You can select Out of Scope on the Account and settings page. To do this, you can follow the steps below:

  1. Click the Gear icon, then select Account and settings.
  2. Go to the Advanced tab, then click the pencil icon in the Accounting section.
  3. Change the Default tax rate selection to Out of Scope.
  4. Click Save and Done.

Once done, undo the import to QuickBooks Online (QBO) so it won't show the Vat code.

 

Another way is to set up a VAT code specific for Out of Scope so you'll be able to select this code upon creating a Journal Entry. To do this, you can follow the steps below:

  1. Click Taxes on the left menu. 
  2. Select on Add Tax.
  3. Add the Tax name (Out of Scope).
  4. Enter the description of the code.
  5. Select an accurate agency.
  6. Provide a zero (0) rate 
  7. Choose the account.
  8. Click Done.

After you've created the code, this will now show up on the VAT list that you can select in your Journal Entry.

 

Also, since you've already imported those transactions, I recommend undoing them and then set up the VAT code first. Then, reimport them this time with the option to select the correct code. 

 

If in case you want to change your mind and use VAT rates on your sales form, you can read this article for additional inputs: How Do I Set Up Sales GST/VAT Rates And Use Them On Forms?

 

Keep me posted on the import process. I'll always be around if you need further assistance, just make sure to mention me here.

Level 3

Removing a VAT code from a journal

OK thank you. I have set up an out of scope VAT rate and set this to zero. 

 

Can I not simply go back into my journals and change the VAT rate to this new OOS rate rather than reimporting the transactions? It would be much easier if I could do this rather than reimporting them. 

QuickBooks Team

Removing a VAT code from a journal

You're welcome, @lkoups.

 

Yes, you can choose to edit those journal entries. You can use QuickBooks Online’s Advanced Search feature to view all the journal entries.

 

Just click on the Magnifying glass icon and then go to Advanced Search. Set the filter to Journal Entries and select all the necessary information. When you finish, you can now view all the journal entries. Simply click to open the transaction and update it. Don't forget to click on Save once you're done.

Here's more information on how to search for transactions in QuickBooks. Also, here's a guide on how to create a journal entry in QuickBooks Online

 

Looking forward to hearing from you if you have any other questions about editing your transactions. Keep safe and have a great rest of the day!