Submit your first VAT report after the conversion

Dataswitcher never converts VAT (we only copy the values). The main reason for this is threefold:

  1. Different software vendors use different rounding algorithms, so differences will appear on invoices and transactions
  2. Most transactions are stamped with two decimals, losing information when we need to do conversions
  3. Historical claims are handled differently and can cause issues in the long run

To actually copy the data over, Dataswitcher treats VAT as a regular line item. We copy the received VAT or paid VAT over as a line item. This means the balances of the accounts will also be copied over (unless they are cleared). In the pre-conversion checklist there is a requirement that you keep the VAT report for the current quarter (or month) until conversion date. You need this to complete your very first report in QuickBooks Online. We use the report from the pre-conversion checklist of Sage50 as an example.

After the quarter or month has finished and our VAT is due

We start a new VAT submission in QuickBooks Online. It should already be prepared for us in the overview (Taxes).

Click "Submit return" to get started.

Adjusting the boxes

Since some information is in the previous software (and QuickBooks Online cannot recognize this data as VAT data) we need to make some adjustments

Next to every box click "Adjust".

Determine the amount to use

The amount you use you can copy from old VAT report (that you got from the old software, like Sage50).

In our example we had a VAT due on sales of 1927.07. So we will use that as a correction.

Prepare the correction

For every box we will fill in:

  1. In adjustment date you can select the end of the VAT period
  2. The rate related to that box
  3. Adjustment account: In the case of Sage50 use either 2200 in case of sales tax, 2201 for purchase tax (these are the standard nominals for tax)
  4. Adjustment amount: Fill in the amount you got from your previous VAT report
  5. Memo: Fill in some text to remind you of the adjustment

Click "Save".


Double check the data to see if it is what you expect to return. You can either mark the report as filed or submit it directly to HMRC.

Please note

This is a one time process only pertaining to the first VAT report you do in QuickBooks Online. After the first report you can use the VAT report from QuickBooks Online without referring back to your historical data.

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