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Submit your first VAT return after converting to QuickBooks

by Intuit•4• Updated 1 month ago

Learn how to prepare and submit your first VAT return in QuickBooks after migrating your data with Dataswitcher.


Submit your first VAT return

Dataswitcher doesn’t migrate VAT settings or filing history. Instead, it copies VAT as regular line items, which means QuickBooks doesn’t recognise them as filed VAT. Before your first return, you’ll need to manually adjust each box to match your figures from Sage 50 or Xero.

  • Use the VAT report from your previous software (e.g. Sage 50 or Xero), covering: The start of the VAT period up to your conversion date.
  • Save this report—it will guide your manual adjustments in QuickBooks Online.
  1. Follow this link to complete the steps in product Open this link in a new window
  2. Select Prepare Return.
  3. QuickBooks will auto-populate the boxes—but the numbers won’t be correct.
  4. Next to each box, select Adjust.

For each box, enter the values from your old VAT report:

  • Adjustment date: Last day of the VAT period
  • Adjustment amount: Enter the correct figure (positive or negative)
  • VAT rate: Match the rate shown in your report
  • Adjustment account:
    • Use 2200 for sales tax (output)
    • Use 2201 for purchase tax (input)
  • Memo: Add a note like “Initial VAT adjustment after migration”

Select Save for each box once done.

Once all boxes have been adjusted:

Important: This process is only required for your first VAT return after migration. Future returns will use standard QuickBooks data.

Cash VAT post-conversion (if applicable)

If your business uses Cash VAT, you’ll need to manually fix your open invoices so VAT is reported correctly. Dataswitcher adds a VAT line item during migration that needs to be removed.

Important: Cash VAT reports VAT only when invoices are paid. Unless VAT is properly applied to open invoices, QuickBooks won’t recognise it in future returns.
  1. Open each unpaid invoice in QuickBooks Online.
  2. For each line item:
    • Make sure the amount is exclusive of VAT
    • Apply the correct VAT code/rate
  1. Delete the extra VAT line created during migration
  2. Select Save & Close.

Repeat this for all open invoices.

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