QuickBooks & VAT

QuickBooks & VAT

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A client, who usually receives VAT refunds because most of their sales are zero rated, has purchased QuickBooks Pro 2006. The opening balance on the HMRC(VAT) account is a debit and we expect subsequent quarterly balances also to be debits. Can some of you, please, explain and comment on the way VAT is initially set up and then the manner in which receipts from HMRC are dealt with in QB?

Alvaro Diaz Gutmann

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By User deleted
27th Feb 2007 18:25

Thanks for your advice
Many thanks Delyth. I followed your advice with a dummy company and it worked.

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By dbending
26th Feb 2007 21:05

Receipts from HMRC are treated as accounts receivable
Initially I would set up a separate opening VAT account and post the receipt by journal to clear it.

When you are in a position to start posting the current VAT return select the type of VAT scheme you are using, cash or accruals, this can be accessed via the 'easy step interview'. When you are ready to file the VAT return use the file VAT return procedures on QB. If it is a receipt you will find that the balance appears on accounts receivable. Receive the money into the figures like you would for any other customer.

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