Reconcile VAT on QuickBooks (US Version)

Reconciling VAT Under Cash Accounting in QuickBooks

QuickBooks accounting software is a popular choice for businesses to record financial transactions and manage tax-related matters, including Value Added Tax (VAT) or Goods and Services Tax (GST). However, many users face challenges when it comes to reconciling VAT under cash accounting in QuickBooks.

The Problem with Reconciling VAT in QuickBooks

One of the most common VAT issues faced by QuickBooks users is reconciling VAT under cash accounting. In other accounting software, such as Sage, the process is quite simple – users can click on the 'Reconcile' tab, and the VAT reconciliation for that particular quarter is done automatically. In QuickBooks, however, users are required to manually record VAT in the closing of the Journal.

Steps to Manually Reconcile VAT in QuickBooks

Since QuickBooks does not have an integrated process for automatic VAT reconciliation, users need to follow these steps to manually reconcile VAT for a particular quarter:

  1. Run a detailed VAT report: Locate the VAT tab in the menu and run a detailed report that includes all transactions related to the box numbers present under the VAT return.

  2. Review the VAT exception report: Take note of the VAT data in the exception report, which comprises VAT-related transactions that have undergone changes (additions, modifications, or deletions) in the periods prior to the current one. These changes may have affected the company's overall VAT liability. The report provides information about the modified VAT transactions and the changes in the transaction amounts.

  3. Verify the VAT return transactions: Review the VAT return transactions to ensure that the correct amounts are being filed and to avoid double entries. This practice helps prevent mistakes in data entry and ensures the accuracy of the transactions before proceeding with filing.

  4. Utilize Help tabs: If you require assistance with any report, QuickBooks provides Help tabs on all reports to keep you informed about the report's content and the fields being used.

Tips for Successful VAT Reconciliation in QuickBooks

  • Regularly review and update VAT-related transactions to maintain accurate records.
  • Ensure that all necessary information is included in the VAT reports before filing.
  • Double-check the VAT return transactions to avoid errors and discrepancies.
  • Utilize the Help tabs and resources provided by QuickBooks for guidance and support.

Frequently Asked Questions

Q: Can I automatically reconcile VAT in QuickBooks?

A: Unfortunately, QuickBooks does not currently have an integrated process for automatic VAT reconciliation. Users need to follow the manual steps outlined above to reconcile VAT for a particular quarter.

Q: What should I do if I encounter issues while reconciling VAT in QuickBooks?

A: If you face any issues while reconciling VAT in QuickBooks, you can reach out to the QuickBooks expert team for assistance. They can provide guidance and support to help you resolve the problem.

Q: How can I ensure that my VAT transactions are accurate in QuickBooks?

A: To ensure the accuracy of your VAT transactions in QuickBooks, regularly review and update your records, double-check the VAT return transactions, and utilize the Help tabs and resources provided by the software. Additionally, running detailed VAT reports and reviewing the VAT exception report can help you identify and correct any discrepancies.


Reconciling VAT under cash accounting in QuickBooks can be a challenging process, as the software does not currently offer an integrated solution for automatic reconciliation. By following the manual steps outlined above and utilizing the available resources and support, users can successfully reconcile VAT and maintain accurate financial records within QuickBooks.

    Enquiry Form



    Toll Free: 800-942-0215