I am purchasing a van with 100% VAT deposit, how do you allocate the deposit as 100% VAT? does anyone have any ideas as I am stuck on it. Thanks.

Hi there, @ldbinstallations.

To record the VAT as a 100% deposit, you'll need to enter a positive and negative amount on the line item of your expenses to zero out the VAT and enter the VAT amount on the box afterward.

Here's how:

1. Click on the + sign and choose Expense.
2. Either choose a payee or leave that box empty.
3. On the first line of the expense choose any of your Expense accounts
4. For the amount enter a pound (1) and choose 20% S as the VAT code.
5. On the second line select the same expense account.
6. For the amount, key in a negative pound (-1) and pick Exempt as the VAT code.
7. The total of the expense will show as 0 under the Subtotal box the VAT box will become editable.
8. Enter the desired VAT amount into the VAT box and Save the expense.

This will create a 100% VAT transaction that will show in Box 4 on the VAT return.

Let me know if you have any follow-ups on this or other questions with QuickBooks. I'm here to help. Wishing you well!