Filing VAT Return in Quickbooks for the first time, incorrect VAT Balance

Glad to have you here in the Community, @Sarah1612.

You'll have to mark the VAT period as filed from the start of the VAT return up to the current quarter so you can get the correct period. I'd be glad to walk you through the steps.

Yes, you're correct. The reason why the VAT returns from the previous years showing on the VAT page is that you've categorised them as VAT Control which is not advisable to do so. Thus, it'll mess up the reporting of your Chart of Accounts or Balance Sheet.

To get this resolved, let's mark the VAT period as filed. Here's how:

1. From the left menu, click Taxes.
2. In the Returns tab, select the previous VAT returns.
3. Click Prepare return under the Action column.
4. Review the Start date and End date of the period.
5. In the Prepare VAT return page, select Mark as filed from the Submit to HMRC drop-down.
6. Click Continue.

I've got you an article for more details: Submit a VAT Return in QuickBooks.

Also, you'll need to record all the VAT returns filed from the HMRC online tool as an expense to QuickBooks. This way, it will be recorded in QuickBooks correctly and won't mess up the reporting.

However, I encourage seeking help from your accountant. This way, they can offer you some advice on correct accounts to use.

You might want to read these articles to learn more about MTD:

• Making Tax Digital (MTD) - FAQ.
• MTD VAT Drop-in Clinic.

Please feel free to drop a comment below if you have additional questions. We're always here to help.