Manage VAT payments

Learn how to record, adjust and delete VAT payments in the tax centre.

The tax centre in QuickBooks has what you need to handle VAT. You can record payments for different time periods and make adjustments as needed. In this article, you’ll learn how to record, adjust, and delete VAT payments in the tax centre.

Here's how to manage VAT payments and other tasks in the tax centre.

Note: If you don't see the features mentioned below, you may be using the tax feature. Learn more about setting up and using VAT.

Review VAT reports

Get a VAT liability report

1. Go to Reports and select Standard reports (Take me there).
2. In the Type report name here ▼ dropdown, search VAT Liability Report and select it.

The report shows each tax agency, the taxable amount of sales, and payments.

See all of your VAT payments

1. Go to All apps , select VAT, then select Overview (Take me there).
2. To view the list of payments, select Payments tab and select View.
3. Select Done to close the window.

Manage VAT payments

Record a VAT payment

1. Go to All apps , select VAT, then select Overview (Take me there).
2. Select the Returns tab.
3. From the list of returns, find the one you wish to record a payment for.
4. From the Action column, select Record payment.
5. From the Bank account ▼ dropdown, select the account you're making the payment from.
6. Select the Payment date.
7. Enter the amount in Payment amount field.
8. Enter required information in the Memo field, if needed, then select Save.
9. To view the payment:
   1. Select Payments tab, find it in the list, then select View.
   2. Select Done to close the window.

Adjust a VAT payment

You can make an adjustment while filing your taxes.  

Use this when you need to decrease or increase the amount of VAT payment for things like credits, discounts, fines, interest, penalties, and corrections for rounding adjustments.

Important: If the Balance due is $0.00 or less for the given tax period, the option to enter an adjustment for the VAT return won't show.

1. Go to All apps , select VAT, then select Overview (Take me there).
2. In the Returns tab, select Prepare return from the Action column.
3. Select the date from the End date and filing date fields.
4. On the Prepare VAT return or Prepare < tax agency name > Agency return page, select Adjust.
5. Select an account to track the adjustment from the Adjustment account ▼ dropdown. Don't select the VAT Payable account. Instead, use the following:
   • Credit or applying a discount: Select an income account, such as Other Income.
   • Fine, penalty, or interest due: Select an expense account.
   • Rounding adjustment: Select an income account for negative differences, or an expense account for positive ones.
6. Enter the amount in the Adjustment amount field. You can enter a positive or negative amount.
7. Enter the reason for the adjustment in the Memo field, if needed, then select Save.
8. Select Mark as filed, then follow the prompts.

Note: VAT can get complicated. If you have questions, reach out to your accountant or tax agency.

Delete a VAT payment

1. Go to All apps , select VAT, then select Overview (Take me there).
2. Select the Payments tab.
3. Select Delete from the Action column ▼ dropdown, then select Yes to confirm.
   Tip: Select the View ▼ dropdown to see this option.

Note: After you delete a payment, the page doesn't refresh automatically.
Leave and come back to the VAT overview page. The payment shouldn't appear anymore.

Related links

• Learn more about how cash and accrual accounting affect VAT.