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File your VAT return and record VAT payments in QuickBooks Online

SOLVEDby QuickBooks315Updated 3 weeks 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, surcharges, and penalties. 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 return.

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 Taxes and select VAT (Take me there).
  2. Check which return is due this month, then select Prepare return.
  3. Select the Accounting period, then update the End date, and the Submission date.
  4. Review your VAT. Make sure everything is correct. If you need to add an adjustment for any entry, select Adjust.
  5. Take note of your total sales and purchases, the amount of VAT you owe, or you can reclaim, and the 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 or Submit to HMRC.
  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 VAT returns through MTD to HM Revenue and Customs (HMRC)

After you review your VAT, you can submit your return through MTD using a functional compatible software that can connect directly to HMRC.

  1. Set up MTD for VAT in QuickBooks Online and connect to HMRC.
  2. Fill out and submit your VAT return form. Refer to the total sales and purchases, the amount of VAT you owe, or you can reclaim, you took note of in Step 1.

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.

Step 4: Check your filing status

You can check your return’s filing status on HMRC website.

This is usually a cache display issue and can normally be fixed by refreshing the page. Learn more about cache and cookies when using QuickBooks Online.

This means that QuickBooks is expecting a refund from HMRC. Review the transactions entered in QuickBooks prior to the filing period if this is incorrect.

This is usually a cache display issue and can normally be fixed by refreshing the page. Learn more about cache and cookies when using QuickBooks Online.

This is usually a cache display issue and can normally be fixed by refreshing the page. Learn more about cache and cookies when using QuickBooks Online.

This usually happens because HMRC has had a system outage or server issue. If HMRC has confirmed and accepted your submission, you can either leave the return as rejected in QuickBooks or contact support for help to unfile it. Once you have unfiled the submission, you can mark the period as filed in QuickBooks.

If you submit a VAT return to HMRC and it shows as rejected in QuickBooks, this means that the submission was unsuccessful. The submission will also be marked as filed in QuickBooks and the return for the next period will be available and ready to submit.

You may still be able to resubmit the return from the dropdown options. If the information in the original submission is incorrect, contact support as you may need to unfile it in order to make corrections and resubmit to HMRC.

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