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May 26, 2025
Question

I have to rework all the invoices for a year on quickbooks to account for VAT how do I do this?

  • May 26, 2025
  • 1 reply
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I need to split the vat from all payments & invoices for the last 12 months to post to the vat account for my first return, how do i do this?

    1 reply

    May 26, 2025

    Let us guide you through on how to split VAT from payments and invoices in QuickBooks Online (QBO), Penny42.

     

    We need to review the existing transactions and edit them to include VAT. Here's how to access the invoices:

     

    1. Go to Sales on the left side menu and choose Invoices.
    2. Under Date choose Last 12 months.
    3. For each invoice that needs VAT applied, click on the invoice to open it. 
    4. Confirm that the appropriate VAT rate is applied to each line item. If VAT was not included, edit the line item.
    5. Use the Tax dropdown to select the appropriate VAT code.
    6. Press Save.

     

     

    Once done, we can review the payments and ensure the payment amounts are split to show VAT correctly. Payments will reflect the total amounts after VAT. Here's how:

     

    1. Go to Sales on the left side menu and choose Invoices.
    2. Under the Status field, choose Paid.
    3. Select Last 12 months under the Date field. 
    4. Open each payment linked to the invoices you modified. Make sure the payment amounts are split to show VAT correctly. 
    5. Press Save.

     

    If you are using QBO Advanced version, we can change multiple transactions or move them to a different account. You can check out this article for the steps and details: Reclassify or move multiple transactions in QuickBooks Online Accountant and Advanced. 

     

    Once done, run the VAT Detail Report to show all the lists of transactions that are included in each box on the VAT return for the past 12 months. Let me guide you on how: 

     

    1. Go to Reports (Take me there).
    2. In the search box, enter VAT Detail Report and then select it.
    3. Select the report period and desired date range.
    4. Press Run report.

     

    When you're ready to submit your VAT returns, refer to this article for the steps and details: Submit a VAT return to HMRC using MTD (Making Tax Digital) in QuickBooks.

     

    Moreover, visit this article to learn how to file your VAT return and record your VAT payment in the program: File your VAT return and record VAT payments in QuickBooks Online.

     

    We are just one post away if you have further questions about managing your VAT or any QuickBooks-related concerns. The Community is always available to help, Penny42.