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Imp_star
July 5, 2022
Question

VAT Refund from "Before" Quickbooks

  • July 5, 2022
  • 1 reply
  • 0 views

Good morning,

 

I started on QBO from 1st April with no carry over of accounts from previous except starting figures

 

I have a VAT refund from the Previous period (Dec-Mar) as a single transaction in my linked bank account

 

How do I account for this? Have seen other posts/threads but either deal with previous historical VAT payment (not refunds) or it is just a refund from a previous return filed through quickbooks.

 

Cheers Muchly

Nick

1 reply

P
payment after leaving
July 5, 2022

Hi Imp_star/Nick To account for a VAT refund you'll have to: Select accounting from the left-hand menu > chart of accounts > New > select current liabilities in the account type field > in the detail type field select tax and national insurance > enter a name in the name field e.g. VAT refund > in the unpaid balance field enter the amount of the refund you received but as a negative amount > enter the date you received the refund in the as of field > save and close.

Create a bank deposit; Select New+ > bank deposit > in the account field select the bank account that you received the refund > in the date field enter the date it was received > in the add funds to this deposit section select the liability account you created above > in the amount column enter the amount of the refund > in the amounts are field select No VAT > save and close.

If you view the lability account that you created in the chart of accounts you will see that there are two transactions and the balance is 0.00. You can now also match the deposit you created to the amount showing on your banking screen. Please note that the reason you're creating the bank deposit manually rather than from the banking screen is that you're not able to select the purely No VAT option from the bank, you can only select No VAT (0% Sales) the affect being that the transaction will show on your sales reports.

G
Graham219
July 5, 2022

As a new user of QB, I need to do this too. I'm trying to following your instructions and right from the start I had to figure out that when you say 'Accounting from the left hand menu' you mean 'Bookkeeping from the left hand menu'. That first part was OK though. 

 

I don't have a 'No VAT' option though. I have a 'No VAT 0% Sales' and 'No VAT 0% Purchases'

 

I selected 'No VAT 0% Purchases'.

 

Looking then at the Liability Account History it does show the deposit as 'No VAT'. 

 

So can I assume that it won't show up as a purchase?

 

Thanks.

 

 

 

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