When I posted the tutorial on VAT in QuickBooks, little did I know that it was going to be ranked the most popular tutorial in my QuickBooks Blog for over three months.
This suffixes that business owners and account managers are keen to understand how to manage VAT remittances, view reports and track VAT payables.
In this post, I will be sharing simple guide on how to view your VAT transactions and generate reports in QuickBooks.
Before I delve into today’s tutorial, I wish to share the two key VAT types business owners track on daily business transactions.
VAT on Sales – This is VAT due on sales.
VAT on Purchases – This is VAT reclaimed on purchases.
As a business manager, your VAT on purchases helps you to calculate amount reclaimed on good bought which is deducted from VAT on sales to arrive at VAT payables (to tax authority)
To view your VAT in QuickBooks, click Report on the QuickBooks menu, Select VAT and Click on any of the VAT report depending on your reporting needs.
Use the options to select the type of VAT Report you want to view.
VAT 100 Report
Use the VAT Report to view a summary of your VAT Account - It shows VAT due on sales less VAT reclaimed on Purchase to give you VAT payable.
VAT Detail Report
VAT Detail Report shows a detailed report of sales receipts that are subject to VAT deductions on a daily basis ( it shows Sales Type, Date, Source Name, VAT Code, VAT rate, Amount and Balance)
VAT Exception Report
VAT Exception Report shows details of VAT filed for exemption with TAX authorities.
VAT Item Summary
VAT Item Summary is the summary of your VAT 100 Report - it shows VAT due on Sales and VAT reclaimed on Purchases.
These are the key QuickBooks report businesses owners use to make decisions when tracking VAT in QuickBooks.