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maceyuk
December 8, 2020
Question

VAT refund and VAT payment, can I match against each other in QB?

  • December 8, 2020
  • 1 reply
  • 0 views

Hi,

I'll try and explain this one as best as possible, here goes:

In August I paid an outstanding VAT balance to HMRC, let's say this was £500 to keep it simple, I paid the day before it was due.  I then did a VAT return for September and they owed me, let's say £600, however my payment crossed with their payment so they only paid me £100 as they thought I owed £500.

So:

August        Payment  due £500,   paid £500

September Refund due £600   received £100

 

They have realised and the next time I needed to pay them again they reduced my payment by £500 but I can't get it to match up in Quickbooks!

 

I have 2 outstanding balances in Quickbooks, one which shows they owe me £500 and one which shows I owe them £500, is there any way to offset these against each other in the VAT / Taxes section?

 

I'm not sure the above makes sense when I read it back, but put simply I've made a payment to them and they thought I hadn't, but when they did realise they've taken it off another VAT payment due later to reduce it, and it's messing up Quickbooks.

1 reply

BettyJaneB
BettyJaneB
December 9, 2020

I appreciate the complete details that you've shared regarding your VAT payment concern, @maceyuk.

 

The VAT return in QuickBooks Online must show the correct outstanding balance in order for the payments and refunds to match. In this case, you'll need to record a refund for £100 so the payment and the refund for £500 to offset your balance so they will match.

 

Know that as long as the outstanding balance shows correct figures on the VAT return, all those payments can be recorded easily. 

 

To record a refund:

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

You may also visit this link to see a video reference on this process: Record a VAT payment or refund [Video].

 

Please get back to me if you have any other questions. I'll make sure you're taken care of. Have a lovely day!

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