Hi there, Mr Tangerine. I'll provide insights to help you adjust your previous VAT returns in QuickBooks Online (QBO).
In QBO, you can adjust your current VAT account to correct some errors on past returns if they're below the reporting threshold, not deliberate, and less than 4 years old.
Here are the following things you need to keep in mind when adjusting your past VAT returns:
- Report any errors that do not meet the above conditions to HMRC.
- Once you're ready to submit your next return, ensure you add the net value to Box 1 for tax due to HMRC or Box 4 for tax owed to you.
- Keep details about any inaccuracies on your return. Remember, any inaccuracies must be accounted for in your VAT account.
Once ready, follow the steps below to successfully adjust your VAT return:
- Go to the Taxes menu, and select VAT.
- Tap Prepare return next to the period you're submitting for. Then, click Adjust next to the VAT line you'd like to change.
- Choose an Adjustment Date and Tax rate. If you don't select the right VAT code, it won't appear on reports or your tax return.
- Select Adjustment Account ▼.
- Choose an account.
- If you're making an adjustment because you received credit and owe less tax to the government, choose an income account you created for this purpose.
- If you're 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.
- Enter the amount in the Adjustment amount section
- Add a Memo to describe the adjustment. Then, tap Save.
Furthermore, you can take a look at this article for the steps on what specific VAT boxes you want to adjust: Make VAT adjustments in QuickBooks Online.
On top of that, it would be best if you'd consult your accountant for additional guidance in dealing with adjusting your VAT returns. They'll also ensure that your books are accurate and avoid messing up the data.
You may also check out this article in case you need to manage your VAT adjustments in QBO: Create or delete a VAT adjustment in QuickBooks Online.
The Community is available 24/7 to lend a helping hand. Message back if you need more assistance with taxes or QuickBooks. Have a good one!
