VAT Journal doesn't agree with VAT Liability Account

Accounting
1

Hello,

I have just been looking at the VAT liability account and notice the VAT journals that QF create once the VAT Return has been submitted are slightly out to that of the VAT return. This looks like the VAT has been underpaid the VAT. What is the casue of this? I need the VAT account to be 100% correct and this has caused me differences which has taken me some time to find today.

Any help will be gratefully received.

Thank you

2

Hi @LaurenH

Are you on cash or accrual accounting for VAT?

3

Hi Mathew

Cash Accounting

4

This is likely to be the cause of this. Because all sales and purchase figures are recorded based on the invoice value, and the VAT return (in this case) is based on the payment figures, there’s likely to be a slight difference.

Is there a big difference between the figures? Did your VAT return report calculations all seem OK before submitting them?