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File your VAT return and record VAT payments in QuickBooks Online

by Intuit Updated 1 month ago

Learn how to file your VAT return and record your VAT payment in QuickBooks Online.

QuickBooks Online tracks your payment due dates in one place so you can avoid late returns and extra fees. Once it’s time to file, you can review what you owe first to make sure all the numbers look good. Then, you can use your up-to-date QuickBooks info to fill out your VAT form.

After filing, you can record your new VAT payment in QuickBooks so your VAT payable stays up to date.

If you still use manual VAT, here’s how to manage VAT payments in QuickBooks Online.

Step 1: Review what you owe

If you haven’t already, make sure everything is correct before you file.

  1. Go to VAT.
  2. In the Returns tab, check which return is due this month, then select Prepare return.
  3. Select the Filing period, then update the End date.
  4. Review your VAT. Make sure everything is correct. If you need to add an adjustment, select Adjust for the item in the list that you want to add as an adjustment. Fill up the adjustment details in the form, and select Save.
  5. Take note of your gross sales, taxable sales, VAT due, and adjustment amount (if you added one). You’ll need these numbers later when you fill out your VAT return form.
  6. After you have done with updating the details in the returns, select Mark as filed.
  7. Select Continue.

Note: If you need a detailed look at what you owe, run your VAT liability report for the same VAT period. This is helpful if you want to review your taxable and nontaxable invoices, receipts, and other transactions.

Step 2: File your return with the right tax agency

After you review your VAT, you can e-file your return on your tax agency’s website, or file by mail depending on your region.

Most states encourage businesses to e-file. But if you can’t file online, you can check your tax agency’s website for more info on how to mail your return.

  1. Go to your tax agency’s website to file your return online. If you haven’t yet, you might have to sign up for your state’s e-filing service.
  2. Fill out your VAT return form. Refer to the gross sales, taxable sales, and VAT due amounts you took note of in Step 1.
  3. Finish filing your VAT return.

Step 3: Record your VAT payment in QuickBooks

Once you're done filing, it's time to keep your VAT info in QuickBooks up to date. Here's how to manually record your VAT payment or refund so that your VAT payable shows as zero.

  1. Go to VAT.
  2. In the Returns tab, under Filed returns, find the return you just filed, then select Record payment.
  3. Under Payment type, select Payment.
  4. Add these payment details:
    • Bank account
    • Payment date
    • Payment amount
    • Memo (optional)
  5. Select Save.

You can see your payment details under the Payments tab.

Step 4: Check your filing status

If you filed online, go to your tax agency's website to check your return’s filing status. If you filed by mail, you can also call your tax agency directly to get an update on your return.

To learn all you need to know regarding VAT, including basic terminology, VAT filling frequency, calculating new VAT liability, adjusting your VAT liability, entering or changing your VAT registration number, and much more, click here.

With Automated VAT, it’s easy to keep your VAT records accurate. If you received a VAT credit, discount, or fine, you can adjust the VAT you owe. This way you don’t have to worry about making corrections when it’s time to file. Learn more here.

Learn more about how to create a custom tax rate.

The VAT rate in Ireland is changing from 23% to 21%. QuickBooks Online sets the VAT items that are used most often where your business is located. However, for this VAT change, you'll need to create a temporary VAT code and associated VAT items. Learn more here.

When preparing VAT returns, you may see a column titled Exception Amount in QuickBooks Online.

Learn how to run a Return of Trading Details (RTD) report in QuickBooks Online. All Irish businesses registered for VAT must file a Return of Trading Details (RTD) form on an annual basis following the end of their respective accounting period. The RTD is a summary of supplies of goods and services, imports and purchases giving rise to deductible input VAT at the various VAT rates. The return includes all Irish, intra-EU, and overseas trades carried out by Irish businesses.

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