How can I adjust VAT paid twice? I paid VAT twice for Q1. Now, I have to file return for Q2. Is there any way that I can adjust the excess payment made?

Hello Geetika Khanna,

You can edit the payment recorded against the Q1 filing by going to Taxes > Payments and selecting that payment. Select delete at the bottom, go back to Taxes and select Record payment against Q1. Record the full payment you made in real life against this return, i.e. double the amount - this will then be taken into account and either reduce the balance you are due to pay on your next return or show as a refund.

Thanks,

Talia

Thank you for the quick response Geetika.

On further reflection of your query I think it might be best for us to take a look into this transaction for you, would it be possible to include a screenshot of the payments which have been recorded and the period on the VAT 100 for the next quarter where the payments should be. If you do not want to provide this information in a public page another option would be to call our Care Team on the number here, if you do call our team will be able to view the information via screen share and directly check the transactions.

Please let us know how you wish for us to assist further with this query as a whole.

Hi Geetika

We are unable to access the screen shot you have provided.

We would be grateful if you can PM us on FaceBook or DM us on Twitter with the screen shot and state your community name.

Hi

I posted my query through direct message on Twitter with screenshot. 

Please check and reply.

Thank for sharing a screenshot, Geetika Khanna.

Based on the details you've provided, two possibilities might happen on the overpayment to HMRC. It's either they'll provide a refund or inform you to apply it on your next return as a credit.

If you receive a refund, you can record it by following the steps below:

1. Go to Taxes and click on the arrow next to View Return for the specific VAT period you need.
2. Hit Record Refund.
3. At the top, select the bank account the refund has gone into.
4. Make sure you've selected Refund under Payment Type.
5. Enter the Refund date and amount.
6. Tick the Save button.

However, if you'll apply this credit to your next return, you can create a VAT Adjustment. Here's how:

1. Go to the Plus sign icon and choose Expense.
2. Select an adjusting account under the Category column.
3. Enter the credit under the Amount section.
4. Hit Save and close.

Once done, let's record the VAT adjustment and select the account you've previously used in the expense transaction. Here's how:

1. Go to Taxes on the left pane.
2. Locate the tax and hit Prepare return.
3. Hit Adjust beside the amount.
4. Make sure to select the correct Adjustment account (the same account used in the expense transaction).
5. Enter the credit amount and the needed details.
6. Tick Save to close.

I'm including articles that provide more details about VAT payment:

• How to record a VAT payment or refund
• Adjust your VAT liability

If you're unsure what account to use, please reach out to your accountant for the best advice.

Let me know if you have other questions about QBO. I'm always glad to help. Have a good day!