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 tax 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. Follow this link to complete the steps in product
2. From the Type report name here ▼ dropdown, enter VAT Liability Report and select it.

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

See all of your VAT payments

1. Follow this link to complete the steps in product
2. To view the list of payments, select Payments tab and select View.

Manage VAT payments

Record a VAT payment

1. Follow this link to complete the steps in product
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. When you're ready, select Save.
9. To view the payment:
   • Select Payments tab, find it in the list, then select View.

Adjust a VAT payment

You can make an adjustment while filing your taxes.  

1. In the Returns tab, select Prepare return.
2. Enter date from the End date and Submission date ▼ dropdowns.
3. On the Prepare VAT return page select Adjust.
4. Select account from the Adjustment account ▼ dropdown.
5. Enter the amount from the Adjustment amount field.
6. Select Save.
7. Select Mark as filed.

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.

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

Delete a VAT payment

1. Follow this link to complete the steps in product
2. Select the Payments tab.
3. Select Delete from the Action column, then select Yes to confirm.

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

Learn more about how cash and accrual accounting affect VAT.