QuickBooks & VAT | AccountingWEB

QuickBooks & VAT

I have a client who uses QuickBooks 2008 Accountant for their bookkeeping. I'm not really a fan, but they seem to like it! I have a couple of questions:

1. Can QuickBooks cope with flat rate scheme VAT? The client is about to register for flat rate VAT and I wondered if QB can prepare the VAT return for them (as Sage does)? From a post in the forum I've just seen, it appears not.  If I've read correctly, the client needs to run the VAT100 and then process adjustments to the VAT return, having manually calculated the Flat Rate VAT due?

2. Is there any way of cleansing the VAT100 reports in QuickBooks? Following an upgrade by QB in Dec 2008, the client has ended up with some odd balances b/f on their VAT100 report and it confuses them every time they go to prepare the VAT return. Their VAT returns are all up to date, so these are old balances which don't mean anything, but we don't seem to be able to get rid of them. The balances seem to come from journals automatically processed in Dec 2008 for the upgrade for "VAT already filed" and "assigning uncategorised VAT".  To further complicate matters, the client has recently changed from invoice date based accounting for VAT to cash accounting and lovely QuickBooks appears to have restated all of the historical data as if it were all done under cash accounting. Is there any way of changing this, because now the historical reports don't make any sense!

Any thoughts/advice would be gratefully received.



Intuit Forum Should be Able to Help

sebo | | Permalink

 I think you should join the Intuit Quickbooks forum and post these questions there as well as here. I too am interested in these questions as I use Quickbooks a lot, and you increase your chances of getting a solution by bringing it to the attention of Intuit technical staff.

Another42's picture

QB 2008 VAT

Another42 | | Permalink

You need also to be aware that from mid April QB 2008 will no longer be supported. Having taken years to finally come up with 2010, Intuit is rapidly pulling the plug from all earlier versions.  VAT IS easier in 2010, but you have to get the balances right first.  Intuit Forum is best for all practical queries.

Malcolm Veall's picture


Malcolm Veall | | Permalink

"QuickBooks appears to have restated all of the historical data as if it were all done under cash accounting"

Has it really re-strated the historic data, or is it just the report you are currently running that is specified on Cash Basis - unlike Sage, any reports on earlier transactions can be run on one basis and, (instantly), re-run on the other - see radio button on "Modify Reports"

petersaxton's picture

It's not the reports

petersaxton | | Permalink

There have been problems when upgrading to 2010 as stated above even when cash basis hads been used and selected for all reports.

Malcolm Veall's picture

I agree Peter

Malcolm Veall | | Permalink

I agree Peter, but I do think that finding your way to the controls on the flexible way QuickBooks runs reports is counter-intuitive to anyone brought up on Sage - this may not be Cara's problem but I have met many Sage old-hands who have assumed that the cash/accruals reporting in QuickBooks is a deep-rooted setting rather than an easily modified parameter of the report just being run.

carachapman's picture

Thank you very much

carachapman | | Permalink

Thanks everyone for your comments.

I wasn't aware of the Intuit forum, so I'll try to take a look there too.

Things have been further complicated because the client suffered a IT disaster last week. Now they are trying to resintall QB, but have discovered that 2008 is no longer supported and have been forced to upgrade to 2010. They are working with QB at the moment about restoring the data, but its a bit of a nightmare really. I must confess that I hate this about QB. Clients either have to continue with software unsupported, or upgrade their software at extra cost. Added to which, when I tried to call QB to resolve a data sharing query with them, they charged my client without informing me that they were doing so. I would have put the phone down if I'd know it was going to cost my client money to ask one question!

Sorry to vent, but really not impressed with QB I'm afraid. 

carachapman's picture

Wood/trees etc

carachapman | | Permalink

Can someone point me in the direction of the Intuit Forum?

Many thanks 

Mrs Incredible's picture

This way to the forum

Mrs Incredible | | Permalink

This should take you to the forum:


I hope you find something useful there.  I agree with you about the ridiculous cost-per-question set up that Quickbooks have.  The Help should be good enough to answer queries such as these and if it isn't then, in my opinion, QB / Intuit have no business charging again for the shortcomings....




Marking old items as filed

Martin Telfer | | Permalink

Just a thought on clearing out the old balances.  When Quickbooks prepares a VAT return, it marks all the relevant entries in the VAT account as 'filed.'  The next VAT return then includes all items before the period end date that are not marked as filed.  What I suspect you have is old entries that, for whatever reason, aren't makrked as filed. 

You can just go into the VAT account and mark the field with an F.  What I have done in the past is prepare a VAT return (Suppliers, VAT, File VAT) with a period end date that covers just the old items and no current ones.  When you have posted the VAT return, just go in and delete the VAT payment (or invoice if it's a repayment claim).  The filed items stay filed and you are left with a clean VAT account. 

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