When filing the return does the VAT Payable then reduce to create the VAT suspense?

Hello there.

I'll assist you in recording tax payments and explain the difference between the VAT payable and VAT suspense accounts in QuickBooks Online.

Once you finish filing, you'll manually record your tax payments in order to zero out your VAT payable.

Here's how:

1. Go to VAT.
2. In the Returns tab, under Filed returns, find the return you just filed, then select Record refund.
3. Under Payment type, select Payment.
4. Add these payment details:
   • Bank account
   • Payment date
   • Payment amount
   • Memo (optional)
5. Click on Save.

The Payments tab will then display your payment information. To learn more about managing VAT payments, see this article for more information: Manage VAT payments in QuickBooks Online.

Furthermore, the VAT Payable account tracks the VAT owed to tax authorities, representing the amount you must pay. The VAT suspense account temporarily holds VAT amounts that cannot be allocated to specific codes or accounts, typically used when there is uncertainty or error in allocation.

If you need more information on any related topics about Value Added Tax, you can check out our help page as a reference: Value Added Tax

Let me know if you still need any assistance regarding VAT. I'll be checking your response in this thread. Keep safe!