Cash Reporting in VAT

Good day to you, Mark.

I'll provide some insights on how VAT is recorded when imported from QuickBooks Desktop (QBDT) to QuickBooks Online (QBO).

There are differences between QBDT and QBO when importing your Vat. One of these is how you'll track VAT. 

When you've filed your VAT in QBDT, a general journal was created with amounts against A/P: in the case of a tax amount owing, and A/R in the case of a refund. Paying the bill or receiving the payment closed the journal.

While in QBO, instead of using A/P or A/R, it creates a new suspense account that retains amounts owed/owing to tax agencies.

QBO tracks VAT differently. Thus, your unpaid invoices and purchases are showing in the VAT report, when in QBDT it isn't. You can refer to this link for more details: VAT when importing from QuickBooks Desktop.

I'd recommend working with your accountant for guidance in reviewing and making changes to your account. This way, we can guarantee the accuracy of accounts after modifying it. 

I'm also adding this article for your reference in managing your VAT codes in QBO: QuickBooks VAT codes. 

I'm all ears if you have any follow-up questions about VAT in QBO. Keep me posted by leaving a reply below. Keep safe!