Let me assist you in adjusting the VAT amount in QuickBooks Online (QBO), @fathima.
Before adjusting the VAT amount, create an adjustment account to input the made changes. Here are the steps to follow:
- Go to Settings and select Chart of Accounts.
- Tap the New button.
- From the Account type dropdown, select Income if you need to decrease your VAT due, and choose Expenses if you need to increase your VAT amount.
- Select the account's Detailed Type. Use Sales of Product Income for the income account and Taxes Paid for the expense account.
- Name your adjustment account (for example, VAT due increase). Then, click Save and Close.
Next, proceed to make the adjustment and locate the tax amount that needs to be adjusted. Refer below for the detailed steps:
- Go to Taxes on the left panel and select VAT.
- Find the tax period you need to adjust, then choose Prepare Return.
- Click the "Adjust" hyperlink next to the Amount column.
- Select the Adjustment date and the Tax rate.
- Choose the Adjustment account you created.
- Enter the Adjustment amount, enter notes in Memo, then click Save.
In addition, you can check these articles about tracking the adjustments, creating other tax rates, and other topics.
Keep me posted if you have other questions about tax concerns. I'll be around to help. Take care.
