Recording VAT payment from your business account

Hi BecJ.

Thanks for contacting QuickBooks.

If you have made a VAT payment, this would be made to the VAT suspense account. You would never need to post anything to the VAT Control account as this account will populate automatically with any transactions that have been assigned a VAT code. The VAT suspense account would be used for recording submissions in the form of journals (These would be created automatically when you file your VAT return), this would create a liability that would then be reduced when the Payment is made.

To answer your question, the Bank payment would be made to the VAT Suspense account.

Let me know if there is anything else I can help with.

I have the same issue about how to record a prior VAT payment. However, the solution provided here does not work. It is not possible to post directly to the VAT suspense account from the Bank account. It returns an error saying it is a system account and cannot be added to. So how do I post the VAT payment already made?

I think I might have answered this myself....?

I added an opening balance for the VAT that was due to be paid in the Opening Balance Equity Account which increased the VAT suspense account.

I then posted the cheque payment to the Opening Balance Equity account which then paid the VAT suspense account.

That means the bank payment has been recorded, the OBE is at zero, as it should be and the VAT suspense account is correct.

Hi Grahamjones.

Would I just be able to confirm the type of transaction you are trying to add from the Bank account ans is this to the Current Liability, VAT Suspense account? I have just tested this from my own account by recording an expense transaction from the banking page to the VAT Suspense account with a NO VAT code assigned and this has been successful.

Let me know if this is successful and I will be back in touch.

Hi Grahamjones,

Apologies, I think you just beat me to respond but I'm glad you've been able to resolve the issue. The account should allow payments from both cheques or expenses which will reduce the liability that was recorded on the account either through journals or the opening balance you said you used.

Please let me know if you have any problems and I will be back in touch :)