From what you have described thus far, I think you are over complicating matters no matter what the regime is.
In the most basic of formats, you would need to have one control account for VAT which will receive transactions for both input and output tax. For example, with a 20% VAT rate a sale amounting to 120 of whatever currency will reflect 100 Dr to the Sales account and 20 to the single VAT control account. A purchase of 60 will generate a 50 Cr to the purchases account and 10 Dr to the single VAT control account and if they were the only two transactions, your VAT liability will be 10. If you are required to pay the 10 over then the accounting will be Dr Bank, Cr VAT control leaving the VAT control account at 0.
However, things aren’t always that simple as in the meantime, there may be further transactions outside of the VAT ¼ being settled where the debits and credits will continue to accumulate so it may be unlikely that the account will ever stand at zero but your VAT database in the software will assist in reconciling your VAT return.
At the next ¼ return of course, transactions which have occurred in the meantime will be accumulated giving you the data you require to complete your next return and so it will continue.
If you jurisdiction is the United Kingdom (HMRC) there are different VAT regimes for different business styles.
This GNU reference referring to HMRC explains more as follows:
VAT
Value‐added tax (VAT) is the tax payable on goods and services. VAT is charged at 20% on purchase of goods and service, but the VAT paid can be reclaimed by business if they are VAT registered on the standard scheme. Businesses collect the VAT on goods and services supplied and then pay this to HMRC periodically (usually every 3 months). A standard VAT registration allows a business to claim VAT refunds on VAT paid, while charging VAT on goods and services at 20%.
Other VAT schemes are available, which are used to simplify accounting which vary the rules above e.g. one scheme allows a business to charge VAT at 20% but pay HMRC only 18%, keeping the difference in return for not reclaiming VAT paid. See
Small businesses need register for VAT only if the turnover is above a certain value (currently £85000). A business may remain unregistered for VAT if operating below this value, or may choose to register in order to reclaim the VAT or gain other benefits of the VAT system.
Business with a turnover above £85000 are required to submit VAT returns using the HMRC Making Tax Digital API (MTD). Legislation requires that the VAT returns are calculated from (“linked to”) account records directly. Thus, they cannot just be manually created in a spreadsheet.
