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Senior Explorer *

VAT refund

I started QBO on 1 August.  I have received a refund from HMRC on 7 August which relates to the July return.

 

How do I record the refund, which category do I attribute it to as at present I have only the VAT control account showing the VAT items input from 1 August onwards.

 

Thanks in advance.

Solved
Best answer 09-06-2019

Accepted Solutions
QuickBooks Team

Re: VAT refund

Hi M for TF

 

As the refund relates to a period not filed within QuickBooks you will have to create a deposit and allocate it to a separate income account, which you can create and call e.g. Historic VAT Refund.

8 REPLIES 8
QuickBooks Team

Re: VAT refund

Hello there, @M for TF.

 

Good to see you here in the Community. I can help walk you through on how to record a VAT refund from HRMC in QuickBooks Online (QBO). 

 

To do this, please follow these steps below:

  1. Go to Taxes and click on the arrow next to View Return for the specific VAT period you need.
  2. Select 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. Add a memo if needed.
  7. Click Save.

This will create a new transaction on your books. If you are adding transactions from your bank feed, you will need to record the VAT payment here first, then match it to the transactions on the Banking page.

 

This will get you on the right track. Feel free to leave a comment below if you have any other questions about recording VAT transactions in QBO. I'd be happy to answer them for you. 

 

Senior Explorer *

Re: VAT refund

I do not have that option as I have not yet filed a return on QBO.  The previous return (and subsequent refund) are from the period prior to QBO.

 

 

 

Senior Explorer *

Re: VAT refund

Screenshot 2019-09-06 at 07.10.12.png

QuickBooks Team

Re: VAT refund

Hi M for TF

 

As the refund relates to a period not filed within QuickBooks you will have to create a deposit and allocate it to a separate income account, which you can create and call e.g. Historic VAT Refund.

Senior Explorer *

Re: VAT refund

Is there a reason I cannot allocate it to the VAT Suspense account and start the VAT Suspense account with a balance BF?

 

 

QuickBooks Team

Re: VAT refund

I can provide you with the reason, M for TF.

 

You're unable to allocate this against the VAT Suspense account since the tax has not been accounted for in QuickBooks.

 

As what John C provided, you'll record it as a deposit and use an income account since this is considered as money in. Here's how:

  1. Click the Plus sign (+) icon.
  2. Select Bank Deposit.
  3. Fill in the necessary fields under Add funds to this deposit.
  4. Click Save and close

Once you're ready to file the form, I've got you the article on how to submit a VAT return. 

 

If you have more questions, you can drop it below. We'll check your post from time to time.

Senior Explorer *

Re: VAT refund

"fill in the necessary fields"....

 

That is the bit though isn't it.

 

What fields are filled in and which allocations are made?

 

I see no reason why I can't allocate the amount to the VAT Suspense account for a date prior to my QBO start and reconcile that account to zero from 1 August (the date we start QBO).

QuickBooks Team

Re: VAT refund

I'll attach a screenshot to guide you, M for TF.

 

 

We're unable to recommend any income account. The account used in my screenshot is manually created. I'll show you how to create one:

  1. Click Accounting, then go to Chart of Accounts.
  2. Click New.
  3. Select the Account and Detail Types.
  4. Enter a desired name.
  5. Click Save and Close

As always, you can confer with your accountant on the best way to categorise the refund.

 

If there's anything else we can do, please let us know.