My client has registered to use the simplified import scheme so now pays VAT on the goods rather than through postponed accounting. How do I treat the VAT payments made?

Hello Tricia-rose2426- , thanks for reaching out to the QuickBooks Community.  Just to clarify so we can make sure we give the correct information are you a QuickBooks accountant user or are you using the QuickBooks Online version? Are you recording the transactions for your client or is this a customer you have invoiced?

Hi

It is a client I am acting for. He uses the postponed scheme for imports and has started using the simplified scheme from January and paid the VAT element on his credit card to HMRC.

Thanks for confirming, @Tricia. I can help you record the VAT payments in QuickBooks Online.

When you make a value-added tax (VAT) payment to Her Majesty's Revenue and Customs (HMRC) or receive a refund from them, it is important to create a detailed record.

This record will allow you to accurately match the transaction with the associated bank transaction. Keeping clear and detailed records of your VAT payments and refunds will help you maintain accurate financial records and ensure compliance with tax regulations.

To record a VAT payment here's how:

1. Sign in to your QuickBooks Online.
2. Go to Taxes and click on VAT.
3. Hit on the ▼dropdown menu next to the return.
4. Choose the Record Payment.
5. Click on the bank account you're client used to pay HMRC.
6. Enter the payment date and amount in the appropriate fields.
7. Add a memo if needed.
8. Select Save.

With this process, I’d highly recommend reaching out to your accountant for additional guidance in recording this properly. If you’re not affiliated with one, you can visit our ProAdvisor page and we’ll help you find one from there.

Moreover, you can refer to these articles to understand VAT codes, how to use them on sales and purchase forms, and the exceptions that are generated when you modify transactions that have already been reported in a VAT return in QuickBooks Online:

• VAT codes in QuickBooks Online: A complete guide
• VAT exceptions and reports in QuickBooks Online

Don't hesitate to let us know if you have additional questions about recording VAT payments. We're available anytime to assist. Stay safe.