When you make a VAT payment to HMRC or receive a refund from them, you need to create a record so that you can make a match with the associated bank transaction, AC.
If the money comes into or goes out of your bank account without this match being made in QuickBooks, your books won’t balance at year end. Please note that when you record a VAT payment, you are recording the payment against a specific VAT period.
Here's how to record your VAT payment:
- Go to Taxes, then select VAT.
- From the Returns tab, find the return you've filed.
- Select Record payment from the dropdown menu next to the return.
- Select the bank account you've used to pay HMRC.
- Enter the Payment date and Payment amount in the appropriate fields.
- Add a Memo if needed.
- Select Save.
For guidance on how to record a VAT refund, please visit this article: Recording a VAT payment or refund in QuickBooks.
After you've recorded either the VAT payment or the VAT refund, go to the Transactions tab to match the transaction and keep your books reconciled.
Additionally, if you need to make adjustments to your VAT payments, kindly check out this resource: Manage VAT payments in QuickBooks Online.
If you have additional concerns about managing your VAT in QuickBooks, don't hesitate to leave a comment in the Community.
