How to record already paid VAT in Quickbooks online

9130 3496 0391 8576 · ‎December 29, 2020

Hi, I'm New to Quickbooks and already submitted and paid 2 VAT returns before start using Quickbooks. I need to know how can I record already paid VAT in Quickbooks and remove already paid VAT amounts from VAT payable account as I have recorded all the sales transactions from the beginning?

IamjuViel · ‎December 29, 2020

You've come to the right place, @9130 3496 0391 8576.

You can create an Expense transaction to record the payment you've made to HMRC for the VAT Return filed outside of QuickBooks. I can walk you through how to do it.

First, let's make sure to create an Expense account and use it in tracking the VAT payments. Here's how:

Go to the Accounting menu.
Click the New button.
Choose Expenses for the Account Type.
Select Taxes Paid for the Detail Type.
Enter a Name (i.e HM Revenue & Customs) for this account.
Click Save and Close.

Once completed, you can create an Expense or Cheque transaction to record the VAT Payments.

Choose the New (+) icon.
Pick either Expense or Cheque.
Select the VAT agency from the Payee drop-down.
Enter the necessary information.
In the Category details section, choose Taxes Paid account for the Category, Description, Amount, then select No VAT for the VAT column.
Click Save and close.

On the other hand, you can follow the steps below to record VAT payments in QuickBooks:

Go to the Taxes menu.
Choose the VAT tab.
From the Returns section, locate the returns you've paid.
Click Record payments from the Action columns.
Enter the VAT payment details.
Click the Save button.

I'm adding this article to help you manage VAT in QuickBooks: Submit a VAT return to HMRC - MTD for small businesses.

Get back to us here if you have other questions about tracking your VAT-related transactions. I'm always here to help.

View solution in original post

IamjuViel · ‎December 29, 2020

You've come to the right place, @9130 3496 0391 8576.

You can create an Expense transaction to record the payment you've made to HMRC for the VAT Return filed outside of QuickBooks. I can walk you through how to do it.

First, let's make sure to create an Expense account and use it in tracking the VAT payments. Here's how:

Go to the Accounting menu.
Click the New button.
Choose Expenses for the Account Type.
Select Taxes Paid for the Detail Type.
Enter a Name (i.e HM Revenue & Customs) for this account.
Click Save and Close.

Once completed, you can create an Expense or Cheque transaction to record the VAT Payments.

Choose the New (+) icon.
Pick either Expense or Cheque.
Select the VAT agency from the Payee drop-down.
Enter the necessary information.
In the Category details section, choose Taxes Paid account for the Category, Description, Amount, then select No VAT for the VAT column.
Click Save and close.

On the other hand, you can follow the steps below to record VAT payments in QuickBooks:

Go to the Taxes menu.
Choose the VAT tab.
From the Returns section, locate the returns you've paid.
Click Record payments from the Action columns.
Enter the VAT payment details.
Click the Save button.

I'm adding this article to help you manage VAT in QuickBooks: Submit a VAT return to HMRC - MTD for small businesses.

Get back to us here if you have other questions about tracking your VAT-related transactions. I'm always here to help.

9130 3496 0391 8576 · ‎December 30, 2020

Hi, Thank you for your reply. If I add paid VAT under expenses account it will deduct from my profit and loss account. I also can find a place to add old VAT payments under taxes tab. Can you please help me with this/

Adrian_A · ‎December 30, 2020

Thanks for getting back to us, 9130 3496 0391 8576.

There are two ways on how we can record a VAT Payment. Aside from the steps given by my colleague, we'll have to record all transactions for the historical period. Then, mark the VAT return of those dates as Filed. This way, we'll have the correct reporting.

I've added these references for more information:

I'll be around if you need help. Take care!

Lucy49 · ‎August 14, 2023

Hi

I have a payment where the company takes off the commission and our vat and in the bank statement sends through only net .. not sure how to imput this into quick books and be able to reconcile bank statement

JoesemM · ‎August 15, 2023

Thanks for joining the Community space, @Lucy49. I'll be glad to share with you the steps on how to record those transactions into QuickBooks so you can reconcile your bank.

You'll want to write a cheques for the payment. On the second line of your transaction, record the Commission and VAT. This ensures your accounts are up-to-date and all of your business transactions are accounted for.

Before doing so, I'd suggest consulting your accountant. They can advise you on which categories to use and the best ways to record this.

Here's how to record a cheque.

Go to + New, then select Cheque.
From the Payee ▼ dropdown, select who you want to address the cheque to.
From the Bank Account ▼ dropdown, select the account you want the money to come from.
Fill out the rest of the fields accordingly.
(Optional) You can skip this step if you only want to record a check. But if you plan to print the check, you can choose to print it now or later.
Select Save and close to close the cheque window. Or Save and new if you need to create another cheque. Note: If you choose a save option, this adds the cheque to your bank register.

For more details, you may open this article: Create and record cheques in QuickBooks Online.

I'll add these links to know how to track your payables and help you reconcile your account in QuickBooks:

Please don't hesitate to respond to this post if you have any further inquiries about managing your payments in QuickBooks Online. I'll be happy to help out. Enjoy your day.

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How to record already paid VAT in Quickbooks online