You can make a sales tax adjustment to separate your VAT. With just a few steps and you’re all set. Let me show you how in your QuickBooks Online (QBO) account.
First, let’s set up an account for the tax adjustment:
Go to the Gear icon.
Select Chart of Accounts.
Click New at the top right.
From the Account Type drop-down, select Income or Expenses.
Select the account’s Detail Type.
Use Sales of Product Income for an income account.
Use Taxes paid for an expense account.
Name your adjustment account (for example, “tax due increase”).
Then click Save and Close.
Once done, create an adjustment. For the complete details about this process, you can refer to this article: Create or delete a tax adjustment.
I’d also recommend checking with your accountant for additional guidance in recording this. This way, we can ensure your accounts is properly recorded after making these adjustments.