Why I cannot see the purshases in the VAT report I just see the sales? I set the custom tax rate for the purchases but they are not added in the VAT report

Hello, @imeliekaram.

Let's review how your VAT item is set up in QuickBooks. It should be applied to both sales and purchases. 

Here's how:

1. Go to the Taxes menu.
2. Click the Edit VAT drop-down.
3. Choose Edit rates.
4. From the Action columns, click the Edit link.

You'd see a pop-up window that will display the VAT details. It should show both sales and purchase rates. 

Once verified, let's run your Tax Liability report. It will display the total sales tax you've collected. Also, it will show the total amount you owe to tax agencies.

Here's how:

1. Go to the Reports menu.
2. Scroll down to the Sales Tax section.
3. Select Tax Liability report.
4. Click the Net Amount corresponding to your VAT Purchases.

You'd be routed to the Transactions report. This displays all of your purchases were VAT is applied on.

Know that the Community and I are always here to help if you have other questions.