I have a bill that is payment of the VAT for a vehicle repair. I ned to enter the bill as 100% VAT can anyone help?

Thank you for visiting the Community today, Andy.

In QuickBooks Online (QBO), you can record a 100% VAT transaction using one of two methods. You can either create an expense (specific transaction type) or modify the VAT option. I’d be happy to walk you through the steps for the first option.

Here's how:

1. Navigate to the New menu in the upper right and choose Bills under Suppliers.
2. Select the payee's name from the Supplier drop-down or leave the field empty.
3. In the first line, choose the category or item from the list.
4. In the Amount field, enter the VAT exclusive amount. For example, 100.
5. Select 20.0% S for the VAT code.
6. On the second line, reverse the amount by entering it as a negative value of -100 and choose Exempt as the VAT code.
7. Review the amount in the VAT amount box and make sure it's the one you need.
8. In the Subtotal section, enter the VAT amount into the VAT box.

Your total bill will be 0, with the tax included in the return. You can also change the VAT box to the amount you need.

Performing the steps above will create a 100% VAT transaction, which will show in Box 4 on the VAT return. To learn more about adjusting the VAT option, refer to Method 2 in this article: Adding a VAT-only or 100% VAT transaction in QuickBooks Online.

I've gathered some useful links that explain how to enter VAT in QuickBooks Online and outline the common codes you can use:

• Set up and edit VAT settings, VAT codes, and VAT rates
• Common VAT Codes
  
  

Feel free to visit the Community space if you have other tax-related concerns or need assistance navigating  QBO. We're always ready to lend a helping hand.