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T
tom.saquet@cross
August 11, 2023
Question

How can I book a Refund of VAT (in the case of a growing company, or company that exports most sales, where Input VAT that exceeds Output VAT for the period)?

  • August 11, 2023
  • 1 reply
  • 0 views
I cannot enter a negative amount in the "Payment amount" field when booking a VAT Payment.  I see no obvious way to book a VAT Refund -- even though the VAT Amount on the QBO return is negative (meaning a negative payable amount).  The workaround is to book a "Misc Receipt" against the VAT Liability account, but this is rather sloppy.  A VAT refund is unusual, but not unheard of -- and quite normal for the type of small, growing company that would choose to use QBO.  

1 reply

R
Rea_M
August 11, 2023

Hello, Tom.

 

I know an easy way you can book a VAT refund in QuickBooks Online (QBO). I'll gladly guide you on how to achieve this task accordingly.

 

Before we start, I'd like to verify which column on the Tax page you see a negative amount. Please know that if the negative amount shows under the Balance column, this means you've overpaid your return. From your description, you'll need to record a VAT refund directly. To do this, here's how:

 

  1. Go to VAT.
  2. Select the All returns ▼ dropdown menu, then choose the specific VAT period you need.
  3. Find the return you filed and select the View summary ▼ dropdown menu.
  4. Select Record refund.
  5. Choose the bank account the refund has gone into.
  6. Make sure you've selected Refund under Payment Type.
  7. Enter the refund date and amount in the appropriate fields.
  8. Add a memo if needed.
  9. Select Save.

 

For more details on recording a VAT payment in QBO, please see this article: Record a VAT payment or refund. Please note that the article is for QBO Ireland, but the same steps apply to all QBO international versions.

 

Additionally, you may want to check out this article as your guide in managing sales tax payments in the Tax Center in QBO: Manage sales tax payments in QuickBooks Online.

 

I'm all ears if you need further assistance with your VAT refund in QBO. You can add your reply below, and I'll circle back to help you.

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