File VAT

Filing VAT is a three part process. First prepare your VAT return in QuickBooks. Second, submit your return to HMRC. Finally, close your filing period in QuickBooks.

Step 1 - Prepare your return

  1. In the navigation bar, click VAT.
  2. Click Prepare return.
  3. Check the dates that QuickBooks shows in the From Date and To Date fields. More...Closed QuickBooks automatically adds the dates of your last VAT period, based on the payment schedule for HMRC. If necessary, you can change them, but remember that your payment schedule is set by HMRC. You can't just change the dates just for your own requirements.
  4. Review the detail area; it shows all the lines in the VAT return, with the balance owing or receivable at the bottom.

    To see individual transactions, hover over the number in the Amount column and then click View transactions.

  5. To make an adjustment to a line on the VAT return, click Adjust.

    How to adjust your tax liability

  6. Click File online with HMRC.

    QuickBooks launches a different window to HMRC's website.

Step 2 - Submit your VAT return online

Before you can submit your VAT return to HMRC online, you must have registered and enrolled for the VAT online service. For more information, go to the HMRC website and see How to submit your VAT return online.

  1. In a different window showing the HMRC website, enter your User ID and password and then select Login to go to the Your HMRC services page.
  2. Select Submit a VAT Return/Set up a VAT Direct Debit Instruction and then select Submit a return.
  3. Click the period that you want to file.
  4. Copy the amounts from your QuickBooks return and paste them into your VAT return in the HMRC window.
  5. After you complete and submit the online return, close the HMRC window and go back to QuickBooks.

Step 3 - Close your VAT period in QuickBooks

This step closes your books in QuickBooks for this filing period. Once completed, any changes you make to transactions in this period will be reflected in the VAT Exception Report for the following return.

  1. On the Prepare VAT screen, click Mark as Filed.

    QuickBooks creates a bill for the amount owing to HMRC. (The bill is created as a payable in your chart of accounts, so it won't appear in the Enter Bills window.)

  2. (Optional) Print a copy of the QuickBooks VAT return for your own records.