Hi Guys,the VAT liability calculation does not include any expenditure except cost of salesI have high expenses that are not being counted. How do I rectify this ? ty

Hello there, @dec_od.

I'm here to help check why your VAT liability calculation does not include any expenditures.

There are lots of possible reasons why VAT doesn't calculate any expenditures in QuickBooks Online (QBO).

First is the tax settings. You may need to check the Tax settings and ensure that all of the information was filled out particularly the VAT registration number. You can check this by following these steps:

1. Click on Taxes at the left pane.
2. Click on the drop-down arrow beside Edit VAT.
3. Select Edit Settings. 

Second, the VAT option may not show up on bills or expenses if the transactions were set to No VAT by default. On the transaction's page where you want to add the VAT, go to the Amounts are section and click on the drop-down arrow. If No VAT is selected, then the VAT rate column will not be included in the transaction. You may select either Exclusive of Tax or Inclusive of Tax.

To learn more about VAT calculations, you may check these articles:

• VAT Getting Started
• Purchase VAT Overview - Setting up and Recording your Purchase Taxes

Feel free to add a comment below if you have any other questions about VAT liability. I'll always be here to help you!