How can exceptions from an expired bank connection be removed from the current VAT return?

I appreciate you sharing your situation regarding the transactions mistakenly posted from your old business account, @Olicrookes.

Since the transactions from your previous business account are already included in your VAT return, QuickBooks doesn't allow them to be uncategorized or removed directly. Instead, you can use a VAT adjustment to offset this.

Here's how:

Step 1: Set up an account for VAT adjustment

1. Go to the Chart of Accounts and select New.
2. Choose Income or Asset as the Account Type (to decrease VAT due).
3. For Detail Type, select Sales of Product Income.
4. Name the account clearly (for example: "VAT adjustment for Decrease)
5. Click Save and Close.

Step 2: Add an adjustment

1. Find the tax period you need to adjust, then select the Prepare return.
2. Next to the VAT line you need to adjust, click Adjust.
3. Select the adjustment account you created.
4. Enter the adjustment amount and you can add a memo explaining the correction.
5. Click Save.

This ensures your VAT return reflects the correct figures without needing to reverse the original transactions.

You can visit this article for more information about the VAT adjustments in QuickBooks Online (QBO): Make VAT adjustments in QuickBooks.

You can click the Reply button below if you need further assistance about VAT adjustment in QBO.