This faq is written for people who make instalment payments to pay their VAT, and who have now just upgraded from QuickBooks 2006 or earlier to the newest version of QuickBooks.

When you convert your company file, QuickBooks looks at your VAT liability account to determine the amount of VAT you've paid in the past, then makes general journal entries to account for your VAT balances.

Therefore, if you tracked your VAT payments in an account other than the VAT liability account or in a sub account of ANY kind, QuickBooks will not factor in these amounts.

When converting your old company file, select one of the two options below to determine how you'd calculate the amount of your final VAT payment ...

• If you did NOT track your instalment payments to the VAT liability account or to a sub account (even if it was a sub account of the VAT liability account), print the pdf (below) and follow its instructions to determine the amount (including your instalment payments) of your final VAT payment that is needed during the conversion process.
  
  Click here to print the pdf.
  
   
• If you always tracked your instalment payments to the VAT liability account, you can ignore this pdf (it doesn't apply to your situation). QuickBooks will ask you to enter the amount of your final payment you made for your last filing period and the date of that last payment. (Thats OK if the date of your last payment occurs past the date of your last filing period.)
  
  QuickBooks now has all the information it needs to calculate your VAT balances.