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Nixxx
August 17, 2022
Question

Need to pay off existing VAT liability that was transferred to QBOnline

  • August 17, 2022
  • 1 reply
  • 0 views

I account for VAT on a cash basis and moved over to Quickbooks Online at the beginning of a VAT quarter but before the previous quarter had been paid.

My accountant suggested an opening balance on VAT control to account for the outstanding liability but now I need to record the actual payment to HMRC and can't see how to do this.  Can you advise please?  For subsequent quarters I believe it should be straightforward as the VAT will be accounted for within Quickbooks.

Thanks very much!

1 reply

G
GeorgiaC
August 17, 2022

Hi Nixxx, thanks for your post - you can account for this by creating a new liability account in your Chart of Accounts, entering the outstanding amount in the balance field. You can then record paying this by creating a pay deposit (+ new > bank deposit), selecting the liability account on the 'category' drop-down under 'add funds to this transaction (check that the 'amounts are' option is set to 'No VAT). Please note the VAT control account is a default account used by QB and should not be posted to manually. 

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