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J
JainB
March 1, 2021
Question

Record repayment due for assets kept on vat deregistration

  • March 1, 2021
  • 1 reply
  • 0 views

Hi there, I am compiling my last vat submission before keeping my business but downscaling,  I have to include a repayment of vat on the only asset I’m retaining - a works vehicle I purchased 4 years ago, how do I record this vat repayment?

1 reply

M
Mark_R
March 1, 2021

I've got you covered, @JainB.

 

Did you file your VAT return within QuickBooks Online (QBO)? If so, you can record a VAT payment. Here's how:

 

  1. Click Taxes from the left menu, then select VAT.
  2. Select Payments, then click Record Payment.
  3. Choose the bank account you've used to pay HMRC.
  4. Enter the payment date and amount in the appropriate fields.
  5. Click Save.

 

I'm adding this article for more details: Record a VAT payment or refund.

 

However, if you filed the return outside QBO, we can record it as a historical payment. We'll just change the effective date of the VAT set up to retrieve the return so we can record a historical payment.

 

Before we proceed, you'll need to import or manually record all the transactions within the VAT return that has the refund. Then, you can change the VAT settings' Effective Date to pull up the return. Let me guide you how.

 

  1. Go to the Taxes menu and select VAT. 
  2. Click Edit VAT, then Edit settings. 
  3. Change the Effective date for a new scheme to the date you filed the return. 
  4. Click Save. 
  5. Under the Filed returns section, the reports will then show up. Then, click Record payment. 
  6. Hit Save once finished. 

 

Most importantly, I still recommend seeking help from your accountant for more guidance on recording this. They may add suggestions based on what's more suitable for your business and to your books.

 

Please touch base with me here for all of your QuickBooks needs, I'm always happy to help. Thanks for dropping by.

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