Hi there, Kim Dreyer.
I suggest going to the VAT page in QuickBooks Online. From there, you'll have the option to create a VAT Adjustment for a refund to apply it on your next return as a credit. However, any manual adjustments you make to your return will impact your VAT control and or VAT suspense account. That said, I'd recommend consulting an accountant to assist you in making an adjustment so your account stays accurate.
Please follow the steps below on how to make an adjustment:
- Click the VAT menu at the left panel.
- On the VAT page, choose Prepare return for the period you are submitting for.
- Select Adjust in the VAT line that you want to change.
- Choose an Adjustment Date and VAT rate.
- Select the Adjustment Account drop-down menu and choose an account. Please note that if you are making the adjustment because you received credit and you owe less VAT to the government, choose an income account that you created for this purpose. If you are making the adjustment to include a fine, penalty, or interest on a VAT return, choose an expense account, such as Interest Expense or Non-deductible Penalties.
- From the Amount section, enter the amount of the adjustment.
- Enter a memo to describe the adjustment like an apply refund.
- Hit Save.
Once done, QuickBooks automatically adds a journal entry to show the adjustment. The next VAT returns you file will include the adjustment. You will see the adjustment amount on your return against the box you have adjusted.
Please check this article below to see different information about the updated VAT Feature in accordance with South Africa: VAT Feature Update FAQ.
Let me know if you have other questions about QBO. I'm always glad to help. Have a good day!
