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martin61
October 11, 2024
Solved

Custom VAT code - no VAT showing in box 4 of VAT return

  • October 11, 2024
  • 2 replies
  • 0 views

Hi all,

I have a leased EV paid for through the business which I use for private use also, so can only reclaim 50% of the VAT on the lease payments. I have therefore set up a custom VAT code in QBO and booked the lease invoice with that VAT code each time. 
The net value of the invoice is showing up in box 7 of my VAT return but the associated VAT at 10% does not appear in box 4 so I am getting no reclaim benefit and neither I nor QBO Support can figure out why.

Any ideas welcomed!

Thanks

Marty 

Best answer by paul72

Hi @martin61 

 

The best way to sort this out is to delete your custom VAT Code - you've probably done it wrong (excuse the bluntness but it's all too easy to go wrong with them).

 

Enter the lease payments as two lines:

Business 50% - standard S20% VAT code

Private 50% - NoVAT Code (this 50% is personal so shouldn't be on the VAT Return)

 

The two lines should also map to separate Tax Accounts (one Business expense & the other Drawings or Personal Benefit) so doing it this way fixes that issue too.

 

Hope this helps.

2 replies

G
GeorgiaC
October 11, 2024

Hi Marty, thank you for posting on the Community 

 

We're unable to advise on custom VAT codes; if you have an issue where the code is not posting as expected, please consult with your accountant or tax professional.

 

If you don't already have an accountant, you can find a QuickBooks certified advisor near you on our online directory. For further support, check out our guide on how to Create a new VAT code in QuickBooks Online. 

paul72
paul72Answer
October 12, 2024

Hi @martin61 

 

The best way to sort this out is to delete your custom VAT Code - you've probably done it wrong (excuse the bluntness but it's all too easy to go wrong with them).

 

Enter the lease payments as two lines:

Business 50% - standard S20% VAT code

Private 50% - NoVAT Code (this 50% is personal so shouldn't be on the VAT Return)

 

The two lines should also map to separate Tax Accounts (one Business expense & the other Drawings or Personal Benefit) so doing it this way fixes that issue too.

 

Hope this helps.

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