When you register you business for VAT at your local tax authority, you will be required to file your VAT returns monthly, quarterly depending on your tax law. Non compliance with these law will attract a penalty or legal action against your business from the tax agency.
You can refer to the tutorial on how to track VAT in QuickBooks if you are new to this accounting software.
Here is how to file your VAT return in QuickBooks:
On the QuickBooks menu, click VAT and select File VAT
Use this window to file and view your VAT return in QuickBooks
VAT due on sales and other outputs: This is the total amount on invoice and receipts generated.
VAT reclaimed on purchases: This is total amount claimed on goods purchased.
These are the key financials to track when filing VAT returns. You are expected to remit the difference between the VAT on sales and purchases.
Proviso: if your VAT on purchase is more that VAT on sales, there is no need to pay rather you should call for reclaim.
At the bottom of your window, you will see that total amount to be remitted to VAT agency.
Click File Return
You can print or decline to your window request.
Wait for your VAT return file to be processed.
You will be prompted to pay your VAT returns in QuickBooks from a selected bank account as shown below.
Select the bill you want to pay ( VAT returns of 42,917.43) and click Pay selected bills.
In this tutorial, we are assuming that you are filing and paying your VAT returns at the same time.
Assign a cheque number and click OK
This window show and confirms your VAT payment details in QuickBooks.
Click Done to close the window.