When you submit a VAT Return, we transfer the amounts from the VAT on Sales and Purchases ledgers to the VAT liability ledger. This is to tell you how much you owe or can reclaim from Revenue.

When you have fully paid your VAT, the balance on the VAT liability is zero.

1. From Reports, select VAT returns.
2. Select View on the VAT Return you want to pay.
3. Select Reclaim, then enter the amount, date, and the bank account you paid from.
4. Select Save.

Once you select Save, you create a VAT Refund transaction type and the VAT Return shows as Paid. If you don't pay the full amount, it shows as Part-paid.

Got a bank feed connected?

If your bank is connected to a bank feed, it's likely that your VAT payment will show in your incoming transactions.

We recommend that you follow the steps above, and then match the incoming bank transaction to the VAT payment.

Record VAT payments

Need to record a VAT payment? See our Record VAT Payment article.