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May 22, 2024
Question

How do I enter a vat only invoice? The usual way of one item £1 with vat and one item -£1 vat exempt and adjust the vat amount doesn't seem to work anymore?

  • May 22, 2024
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1 reply

May 22, 2024

Hi RAY15, thanks for reaching out to the QuickBooks Community

 

There hasn't been an update to the way that VAT-only expenses are entered in QuickBooks. Please follow the steps below to create a 100% VAT transaction that will show in Box 4 on the VAT return.

 

1. Select + New and Expense.
2. You can either choose a payee or leave the field empty.
3. On the first line of the expense, choose any of your Expense accounts.
4. In the Amount field, enter the VAT exclusive amount. For example, 1.00.
5. Select 20.0% S as the VAT code.
6. On the second line, reverse the amount by entering it as a negative value. For example, -1.00.
7. Select Exempt as the VAT code.
8. Check if the amount in the VAT amount box is the amount you need.
9. The total of the expense will be 0 and you will see the VAT to be included in the return. You can then edit the amount in the VAT box to whatever you need it to be.
10. Under Subtotal, enter the VAT amount into the VAT box and Save the expense.

 

For further information, please see our guide on recording 100% VAT transactions in QuickBooks Online. If you need any further support, please get back in touch below.