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Record VAT payments and refunds

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How to record either the payment of VAT or the amount you reclaimed in Sage Accounting Start.


How it works

When you enter a transaction with VAT, we update the VAT on Sales or VAT on Purchases ledger accounts, depending on whether it is a sale or a purchase. This tells you the total amount of VAT from your sales and purchases.

When you submit a VAT return, we transfer the amounts from the VAT on Sales and VAT on Purchases ledger accounts to the VAT Liability ledger account, to tell you how much you owe to HMRC. The balance of the VAT on Sales and VAT on Purchases is now zero.

When you pay your VAT return, we update the VAT liability ledger account with the amount of the payment. When you have fully paid your VAT, the balance of the VAT liability is zero.

Learn more about clearing the VAT liability account.

You can record your VAT payment or refund in a few different ways:

  • Use the Pay or Reclaim button from the VAT Return
  • Match the payment or refund from a bank feed
  • Record a VAT payment without a corresponding VAT return