VAT When Importing From QuickBooks Desktop
When you move from QuickBooks Desktop to QuickBooks Online, you may notice differences in how your VAT (sales tax) is tracked and where your payments appear. Here is what you need to know about these changes.
Why A/P and A/R balances look different
In QuickBooks Desktop, filing a VAT return often created a general journal entry that posted amounts to your Accounts Payable (A/P) or Accounts Receivable (A/R) accounts. You would then pay the bill or receive the payment to close the journal.
QuickBooks Online handles this differently. Instead of using A/P or A/R, the system creates a specific liability account to track amounts owed to or by tax agencies. If you filed a VAT return in Desktop but did not pay the amount (or receive a refund) before importing, those balances are moved from your Desktop A/P or A/R accounts to this new liability account in QuickBooks Online.
Where to find VAT payments and refunds
You will no longer find VAT payments in the bill payments window. QuickBooks Online manages all tax payments and refunds centrally in the Taxes (or VAT) section.
To view your transactions:
- Go to Taxes (or VAT) in the left navigation menu.
- Select the appropriate tax agency.
- Here you can view your filings, payments made, and any refunds recorded.
This central view helps you keep track of your tax liabilities and payments more efficiently.