When you submit a VAT Return, the values transfer to the VAT Liability ledger. This shows how much you owe or can reclaim from HMRC. Once fully paid, the VAT liability balance is zero. View the transaction in your bank activity under Banking.
Once you select Save, you create a VAT Payment transaction type and the VAT Return shows as Paid. If you don't pay the full amount, it shows as Part-paid.
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.
Need to record a VAT refund? See our Record VAT refunds article.