Problem: Trying to import VAT amounts on IIF transactions into QuickBooks UK, errors occur when attempting to import the file. Common errors messages include:
"The transaction is not in balance. Make sure the amount in the detail area on the form for this transaction equals the amount at the top of the form."
“You cannot associate an item with VAT liability, Undeposited Funds, accounts receivable, accounts payable, or non-posting accounts. Usually, if you sell the item, use an income account; if you buy it, use an expense account.”
In some instances some IIF files are handling VAT in a split line (SPL) but when processing QuickBooks VAT reports (VAT 100) these amounts are not getting reported correctly or the error above occurs.
Cause: The IIF format used in QuickBooks UK no longer supports VAT and specifically the fields VATAMOUNT, VATCODE and VATRATE. Intuit's redesign of the Global Tax Model for QuickBooks meant that support for these fields was discontinued from QuickBooks 2008 UK edition. As a replacement VAT was supported in the QuickBooks XML interface used by third party addon applications.
Resolution: The following are offered as potential solutions to this issue:
- Modify the IIF file to not include VAT codes or amounts, import the IIF file and manually apply VAT to the transaction in QuickBooks.
- Use our QuickBooks Import utility called Zed Axis to import your IIF file and map a VAT tax code and append that to the transactions as it is imported into QuickBooks UK. QuickBooks UK will automatically calculate the VAT amount on the transaction according to the Tax code used.