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File your VAT return and record tax payment in QuickBooks Online

Learn how to file your VAT return and record your tax payment in QuickBooks Online.

QuickBooks Online tracks your payment due dates in one place so you can avoid late returns and extra fees. 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 tax form.

After filing, you can record your new tax payment in QuickBooks so your VAT payable stays up to date.

If you still use the manual VAT, here’s how to file your VAT return and record tax payments.

Step 1: Review what you owe

If you haven’t already, make sure everything is correct before you file.

  1. Go to Taxes, then select VAT. Check which return is due this month, then select Prepare return.
  2. Review your VAT. Make sure everything is correct. If you need to add an adjustment for things like credits, discounts, or corrections, select Adjust.
  3. Take note of your gross sales, taxable sales, tax due, and adjustment amount (if you added one). You’ll need these numbers later when you fill out your VAT return form.
  4. After you have done with updating the details in the returns, select Mark as filed or Submit to HMRC.
  5. Select Continue.

Note: If you need a detailed look at what you owe, run your VAT liability report for the same tax 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 e-file your return through MTD on the Self Assessment HMRC website, or file by mail.

  1. Go to your tax agency’s website to file your return online. If you haven’t yet, you might have to sign up to your state’s e-filing service.
  2. Fill out your VAT return form. Refer to the gross sales, taxable sales, and tax due amounts you took note of in Step 1.
  3. Finish filing your VAT return.

Can I still e-file right in QuickBooks?

Starting April 21, 2020, QuickBooks Online no longer supports e-filing VAT payments. But don’t worry. It’s just as easy to e-file right on your tax agency’s website. Moving forward, you can manually enter your tax payment in QuickBooks right after you file to keep your VAT info up to date.

Step 3: Record your tax 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 tax payment to zero out your VAT payable.

  1. Go to Taxes, then VAT.
  2. Find the return you just filed, then select Record payment.
  3. Add these payment details:
    • Bank account
    • Payment type
    • Payment date
    • Payment amount
    • Memo (optional)
  4. Select Save.
  5. Your return is now marked as Paid.

You can see your payment details under the Payments tab.

To edit a VAT payment or refund

If you need to amend a previous VAT payment/refund, for example some details have been entered incorrectly, you’ll need to delete the transaction before re-entering it in QuickBooks.

  1. First, find the VAT payment/refund by using the search function (magnifying glass icon).
  2. Select the transaction in question.
  3. Select Delete.
  4. Then, go back and follow the Step 3: Record your tax payment/refund.

Step 4: Check your filing status

If you filed online, go to your tax agency's website to check your return’s filing status. If you filed by mail, you can also call your tax agency directly to get an update on your return.

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 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, please contact support as you may need to unfile it in order to make corrections and resubmit to HMRC.

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