How to reconcile the vat suspense account

Glad to have your query, Daphne. I'll clarify how VAT suspense accounts are used and reconciled in your QuickBooks Online file.

The VAT suspense accounts contain the amount submitted to your tax agency but haven't been collected or refunded yet.

Once the VAT filing is marked as filed, the value of the return will move out from the VAT control account and into the VAT suspense account, where it'll be stored until the payment is made.

Thus, let me guide you on how to record your VAT payments so you can review and match them in your account:

1. Go to VAT.
2. In the Returns tab, under Filed returns, find the return you just filed.
3. Under the Action column, select Record Payment.
4. Under Payment Type, click Payment.
5. Add these payment details:
   • Bank account
   • Payment date
   • Payment amount
   • Memo (optional)
6. Then, select Save.

When you file the returns, the money will be taken from the VAT suspense account, and the selected bank account will decrease by the value of the return.

You can learn more about filing VAT returns and recording payments in your account: File your VAT return and record tax payments in QuickBooks Online.

Moreover, I'll include this guide to help you manage taxes and other tasks in the tax center: Manage VAT payments in QuickBooks Online.

With the information above, you'll be able to track your tax filings and manage your overall taxes. If there's anything else you need assistance with, please let us know in the comments below. Keep safe.