What are VAT Exceptions?

When preparing VAT returns, you may see a column titled “Exception Amount.” The amounts in this column represent transactions you have previously filed for, but have since changed, deleted or even added. This is to ensure that no VAT collected (or credits earned) are missed or duplicated.
 

Can I view the transactions that contribute to exception amounts?

Yes! To view the exceptions that are pending for the current filing, navigate to the VAT Centre and find the VAT for which you are filing. Then, select the VAT Detail report from the “Run reports” or "View reports" drop down depending on what you see. This will give you the line by line, transaction by transaction detail for your exceptions.
 

Some exceptions cancel out and look to be for the same transaction; what does this mean?

If you delete and recreate a transaction for a previous period, then your exceptions will show both changes as exceptions but will net out to zero. This is also caused by editing and saving a transaction, even if the line item in question was not changed. This is perfectly normal and should not affect the balance of your filing.
 

I need to change the amount of my filing in QuickBooks. I understand where the exceptions are coming from and there are other factors that need to be accounted for.

When filing your return, use the “adjust” link on the far right of the line to increase or decrease the amount as necessary. Before creating an adjustment, speak to your accountant or an accounting professional if necessary to ensure that your chart of accounts is correct after the adjustment. They can view these adjustments or previous adjustments by going to the chart of accounts and searching for adjustment accounts. .