VAT Return recording

Hello there! You're continued participation in the Community forum is greatly valued. We always appreciate your presence, Imp_star. 

It's my pleasure to walk you through the process of tracking your VAT payment in QuickBooks Online. To do this, you'll need to find the bank transaction on the Banking page. Please proceed to the following steps below:

1. Select the transaction in question.
2. Click the Find Match button.
3. Choose a transaction to match.
4. Hit the Resolve Difference radio button for your small fee. 
5. Fill in the necessary fields, then Save.

I've also included the following articles that will assist you in handling bank transactions moving forward:

• Categorise and match online bank transactions in QuickBooks Online
• Set up bank rules to categorise online banking transactions in QuickBooks Online

Please feel free to visit the Community again if you have further clarifications. We are always here to help you at any time. We're rooting for your business venture with QuickBooks, Imp_star!

Cheers muchly,

I recorded the VAT payment in the taxes menu but only filled in the VAT total not the full amount that was actually paid (i.e. VAT return plus card fee).

Due to this the match is not being created as the two amounts are different, I presume?!?

If I delete the VAT payment record and create a new one for the full amount (Return plus card) will it then show as a match and then I can do the resolve difference?

Cheers muchly appreciated Nick

Hi Nick,

You wouldn't want to delete and recreate the tax payment to include the card fee portion because it will be treated as a tax overpayment. You can leave the VAT payment as is.

I highly suggest checking this with an accountant. Technically, you can create an expense transaction for the card fee portion, and make sure it has a emo which explains the scenario. Then, match the downloaded payment to the  tax payment and the expense you create. Do this with the Find match option. 

Use the Find match option:

1. Go to the Banking page.
2. Click the downloaded payment transaction and click on it.
3. Choose Find match.
4. Adjust the date range.
5. Find and choose the original tax payment and the expense transactions.
6. Click Save.

You can then reconcile your account after adding all transactions.

Feel free to go back to this thread if you have other questions in mind.