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Submit a VAT return to HMRC using MTD in QuickBooks Online

SOLVED•by QuickBooks•3196•Updated October 03, 2023

If you're a business owner in the UK, you're probably aware that Making Tax Digital (MTD) is in effect. This means that you need to submit your VAT return electronically to HMRC using MTD-compliant software.

In this article, we'll walk you through the process of submitting your VAT return through QuickBooks Online, as well as provide some tips on recording VAT payments and changing the filing status of a VAT return.

Before you start, make sure you:

• Set up VAT and check that you're using the correct VAT Registration number–this is essential for accurate reporting under MTD.
• Set up the MTD feature and authorise QuickBooks to connect to HMRC before you submit a return.

  1. Go to Taxes, then select VAT (Take me there).
  2. Select the Returns tab.
  3. Next to the VAT return you need to submit, select Prepare return.
    • Select Error check your return from the ▼dropdown options to check that everything on your return is posted correctly.
  4. When you're ready, select Submit to HMRC.
  5. Tick the I declare the information is true and complete checkbox.
  6. Select Submit to HMRC. Wait until you see the confirmation message and don't close this page until the receipt confirmation shows.
  7. Once HMRC accepts the submission, select Done.

That's it! When you submit a return to HMRC, you'll receive an email confirmation containing details about your submission and VAT return.

Don't worry if your VAT return is rejected. You can change the filing status from rejected to filed if you need to. Here's how:

  1. Go to Taxes, then select VAT (Take me there).
  2. Select the Returns tab.
  3. Next to the rejected VAT return, select Resubmit return.
  4. Finally, select Mark as filed.
    Note: Once the return is marked as filed you'll no longer have the option to resubmit the period to HMRC. If you need to resubmit the period, you'll need to do this manually through HMRC.

It’s important to record every time money goes in or out of your bank account so that your books balance at the end of each tax year. When you make a VAT payment to HMRC, or receive a refund from them, you need to:

  1. Record all VAT payments and refunds.
  2. Categorise and match them with the associated bank transactions. 

If you get an error message when you submit a return, we have a way to fix it. This article lists common MTD issues and how to fix them.

We're here to help
If you have questions about your VAT return, or need help fixing an error when submitting to HMRC, let us know. Sign in to QuickBooks and start a discussion with a qualified QuickBooks Online expert in our community.

QuickBooks MTD software currently supports Standard, Cash and Flat Rate schemes. QuickBooks Online Bridging Software supports Standard and Cash schemes. Businesses whose home currency is not GBP are currently not supported for MTD.

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