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I am preparing my first vat return and I need to include previous purchases on my first vat return to be able to reclaim the vat, please can someone advise how?

Forum|Forum|6 years ago
April 1, 2020
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QuickBooks Online

Best answer by RenjolynC

Good day, stewtonplumbing.

When preparing VAT, please make sure to check this article for more information about reclaiming the VAT: Set up and record purchase taxes. Please take note that backdating and reclaiming your VAT on purchases has an expiry date. You can visit the HMRC website here for more information about this process.

After setting up the rate for VAT on Purchases, you can record your Purchase VAT by following these steps:

Go to Taxes and select VAT (Take me there).
On the VAT page, select Prepare return for the period you are submitting for.
Select Adjust in the VAT line that you want to change.
Choose an Adjustment Date and Tax rate.
- Note: If you do not select the appropriate VAT code it will not be reflected on your reports or your return.
Select the Adjustment Account ▼ dropdown menu and choose an account.
- If you are making the adjustment because you received credit and you owe less VAT to the government, choose an income account that you created for this purpose.
- If you are making the adjustment to include a fine, penalty, or interest on a VAT return, choose an expense account, such as Interest Expense or Non-deductible Penalties.
In the Adjustment amount section, enter the amount of the adjustment.
Enter a Memo to describe the adjustment. Although optional, this is good practice as it will help to identify the adjustment if needed. See more detail in this article

Please leave a reply on this thread if you need more help with VAT in QuickBooks. Thanks.

RenjolynCAnswer

Good day, stewtonplumbing.

When preparing VAT, please make sure to check this article for more information about reclaiming the VAT: Set up and record purchase taxes. Please take note that backdating and reclaiming your VAT on purchases has an expiry date. You can visit the HMRC website here for more information about this process.

After setting up the rate for VAT on Purchases, you can record your Purchase VAT by following these steps:

Go to Taxes and select VAT (Take me there).
On the VAT page, select Prepare return for the period you are submitting for.
Select Adjust in the VAT line that you want to change.
Choose an Adjustment Date and Tax rate.
- Note: If you do not select the appropriate VAT code it will not be reflected on your reports or your return.
Select the Adjustment Account ▼ dropdown menu and choose an account.
- If you are making the adjustment because you received credit and you owe less VAT to the government, choose an income account that you created for this purpose.
- If you are making the adjustment to include a fine, penalty, or interest on a VAT return, choose an expense account, such as Interest Expense or Non-deductible Penalties.
In the Adjustment amount section, enter the amount of the adjustment.
Enter a Memo to describe the adjustment. Although optional, this is good practice as it will help to identify the adjustment if needed. See more detail in this article

Please leave a reply on this thread if you need more help with VAT in QuickBooks. Thanks.

L

lucy24

Hi RenjolynC,

I am in the same position. I am trying to add VAT which needs to be reclaimed from purchase prior to our VAT registration therefore need to adjust Box 4 on the return. The advice below seems clear until point 5. What do you mean by 'choose an income account that you create for this purpose'? I am very new to Quickbooks and running our family business so I apologise if this seems a silly question.

Thanks in advance for your help!

C

ChristieAnn 11

Hi there, lucy24.

Thank you for posting here in QuickBooks Community.

The choose an income account that you create for this purpose means you'll need to select an income account. This is to track the adjustment you have for the credit. And, you owe less VAT to them.

Please know that you're always welcome to post if you have any other concerns. Wishing you and your business continued success.

L

Lazza

Hi I am doing the same, do I need to upload all the relevant receipts from the last four years?

R

RoseJillB

Welcome to the Community, @Lazza.

Yes, you’re right! You have to upload all the relevant receipts of your sales transactions. When reclaiming VAT on your Purchases, you’ll want to ensure that the necessary details are displayed. These details are as follows:

Suppliers Name
Suppliers VAT Registration Number
Suppliers Registered Address
VAT amount charged on the Purchase/Expense (even if this figure is zero)

Refer to Reclaiming VAT on your Purchases in this article as your reference: Set up and record purchase taxes

Let me know if you need further assistance with taxes. The Community always has your back. Stay safe!

M

mobilampshades

Hello, this doesn't make sense to me. Do I just make an one line adjustment against my vat return in Box 4 and have a spreadsheet listing all the vat I am claiming back pre-Vat registeration? If I was to enter all these adjustments as expenses then my VAT return wouldn't pull in these expenses as I am on cash basis.

Z

zac-zenzyc-io

Hi,

I'm in the same position: I'm trying to record purchases from the past years to make my first VAT return.

As part of this, I need to include the VAT rate of purchases/suppliers. How do I add the relevant VAT rate and VAT number to suppliers and/or transactions? There doesn't seem to be a way to add the suppliers VAT number either to the supplier, or to the transaction. Therefore: how can I compile a complete VAT return? Don't I need to assign the correct VAT amount/rate/number for each purchase to the appropriate supplier?

Thank you.

KlentB

I'll guide you in recording the purchases, trDuilleog.

You can assign the correct VAT rate for each transaction to complete your return. First, make sure to set up the correct rates for your purchases in the Tax Center by following the steps below:

Go to the Taxes menu
Select the VAT tab, then click Add tax.
Choose Tax rate or Custom rate.
Give the new tax rate a name, description, and percentage rate, then choose an account and determine which return line you want the tax amount to appear on.
Tick the Purchases or This tax is collected on purchases checkbox.

After that, enter your previous purchases as you'd normally do. Then, add the newly created VAT item in the VAT column. If the transactions wouldn't be pulled up in your return, you can create an adjustment to reclaimable amounts in Box 4. Here's how:

Go to the Taxes men, then select the VAT tab,
Click the Prepare return and check the necessary details.
In the Box 4 section. click Adjust to make changes on VAT reclaimed on purchases.
Enter the amount and other necessary details.
When you're done, select Mark as filed or File online with HMRC.

For more tips in preparing and filing your VAT return in QuickBooks Online, you can read these articles:

Stay around if you have any other concerns or follow-up questions about VAT. Have a great rest of the day.

S

Susan152

Hi KlentB,

Just want to double check. So if i have to include the purchase invoices prior VAT registration, doesnt QB gives me an option to include the invoices which falls before the first VAT period. Do i have to manually make the adjustment always?

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