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Re: How can I adjust VAT paid twice? I paid VAT twice for Q1. Now, I have to file return for Q2. ...

Thank for sharing a screenshot, Geetika Khanna.


Based on the details you've provided, two possibilities might happen on the overpayment to HMRC. It's either they'll provide a refund or inform you to apply it on your next return as a credit.


If you receive a refund, you can record it by following the steps below:

  1. Go to Taxes and click on the arrow next to View Return for the specific VAT period you need.
  2. Hit Record Refund.
  3. At the top, select the bank account the refund has gone into.
  4. Make sure you've selected Refund under Payment Type.
  5. Enter the Refund date and amount.
  6. Tick the Save button.

However, if you'll apply this credit to your next return, you can create a VAT Adjustment. Here's how:

  1. Go to the Plus sign icon and choose Expense.
  2. Select an adjusting account under the Category column.
  3. Enter the credit under the Amount section.
  4. Hit Save and close.

Once done, let's record the VAT adjustment and select the account you've previously used in the expense transaction. Here's how:

  1. Go to Taxes on the left pane.
  2. Locate the tax and hit Prepare return.image.png
  3. Hit Adjust beside the amount.image.png
  4. Make sure to select the correct Adjustment account (the same account used in the expense transaction).
  5. Enter the credit amount and the needed details.
  6. Tick Save to close.


I'm including articles that provide more details about VAT payment:

If you're unsure what account to use, please reach out to your accountant for the best advice.


Let me know if you have other questions about QBO. I'm always glad to help. Have a good day!