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Level 1

Where do I record a VAT repayment please?

QuickBooks Team

Where do I record a VAT repayment please?

Hello Yvonnedale


If you are using QuickBooks Online more information on how to record this can be found here

If you have not filed the return in the QuickBooks Online or if you are using the Desktop product just reply back to this post




Level 1

Where do I record a VAT repayment please?

Hi Emma,


Please can you tell me how to record a VAT repayment from HMRC for a filing that was done before moving to QBO.  Please note that since moving to QBO I have filed a few subsequent VAT returns using QBO.






Where do I record a VAT repayment please?

Hi @Hem,


I've got your back in this concern of yours regarding a historical VAT refund from HMRC.


Since this VAT refund happened before moving to QuickBooks Online (QBO), I suggest entering a journal entry. 


To create one, follow these steps:


  1. Go to the + New menu.
  2. Tap Journal Entry.
  3. Fill out the fields as necessary. 
  4. When done, click Save and close.

As for which accounts to use, I suggest consulting your bookkeeper or your accountant. This ensures you're recording the journal entry correctly and keeping your books accurate.


As for recording VAT payments or refunds for periods that are recorded in QBO, see this article: Record a VAT payment or refund. Here you'll find 2 sets of steps for payment and refund. As well as a short video of this process, for your reference. 


If you have any other questions, simply place it in the comments below. I'll be sure to take care of it. 

Level 1

Where do I record a VAT repayment please?

Hi Ryan_M,


Thanks for the quick reply.


I have created a journal entry as your suggested, but I have one more question - the VAT repayment shows up in my Banking feed but there is no option to "Match" it to the journal entry.  Can you suggest a way to do this as my QBO bank balance currently does not match the actual bank balance.





QuickBooks Team
QuickBooks Team

Where do I record a VAT repayment please?

Let me help you match your actual bank balance in QuickBooks Online (QBO), Hem.


There are a few criteria that could prevent the QBO from matching the deposit to the payment. Among these are:


  • Verify that the transaction has not been reconciled.
  • Verify the transaction was entered using the same bank account.
  • Make sure the Quickbooks Online transaction has not been previously matched to another bank downloaded transaction.
  • Make sure it is not on the Bank Deposit page (undeposited) if it is a deposit or payment received.

For more details about this one, refer to this article: Categorise and match online bank transactions in QuickBooks Online


If you're still unable to find the match, you can exclude the transactions instead of matching them. This moves the transactions out of the For Review tab. Then, it will not impact your books since you've already recorded the VAT payment. Just follow the steps and details in this article: Exclude or delete transactions.


On the other hand, QBO automatically creates an opening balance once you connected your bank account. The amount is based on the real-life bank account which causes the incorrect balance in your account.


Since you already entered older transactions that come before your opening balance, just follow the steps in this article to reconcile them: Reconcile transactions that are older than your opening balance in QuickBooks Online.


Once done, perform the steps in this article to match your QBO bank balance and your actual bank balance: Fix opening balance issues in QuickBooks Online.


I have articles here to learn more about fixing balance issues: 


For more insights about managing your bank transactions, check out this link:


Fill me in if you need a hand with running your financial reports or any QBO related. I'll be here to help. Have a great day ahead. 

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