I have a client with 2 companies, same VAT number for both. He just purchased ipad splitting cost per company 1/2 paid. 1/2 credit agreement. How to record in QB for VAT?

I've got you covered on how we can record the whole purchase including VAT in QuickBooks Online (QBO), info-jmebookkeep.

The purchased iPad was split half cost per company and half credit agreement. It would be best to consult your accountant on properly recording this one in QBO. Also, when you purchase any goods or services from a supplier, it is presumed you are likely to be charged VAT (as the invoice you receive will be subject to VAT). This is when you decide whether the purchase tax shown on the invoice is recoverable or not.

Please note that only VAT-registered companies are allowed to issue invoices inclusive of VAT​. If it is not yet set up, we'll need to go to Taxes and select VAT (Take me there). Then follow the on-screen wizard. Once done, set up VAT on Purchases by following the steps below: 

1. Go to Taxes, and select VAT (Take me there).
2. Select the Edit VAT ▼ drop-down arrow, then select Edit rates.
3. If VAT for Purchases has not already been added, select Add tax rate.
4. Select the Purchases checkbox.
5. Give the new tax rate a name, description, and percentage rate (usually the standard), then choose an account and determine which return line you want the tax amount to appear on.

Then, we'll also need to record any VAT on purchases (similar to VAT on sales). Let me guide you on how: 

1. Go to Taxes, and select VAT (Take me there).
2. Choose the Prepare return and check the necessary details.
3. Any adjustments that need to be made for purchase VAT reclaims and on sales VAT and outputs can be made at this point by selecting Adjust.
4. To complete, press Mark as filed or Export or File online with HMRC.

You can check out this article for more details about managing purchase taxes: Set up and record purchase taxes in QuickBooks Online. 

Additionally, feel free to visit these articles to assess your taxable and non-taxable transactions and successfully file your VAT return, avoiding the risk of penalties:

• Check how much VAT you owe in QuickBooks Online.
• File your VAT return and record tax payments in QuickBooks Online.

If you have questions or need further help managing your VAT or any QuickBooks-related concerns, please leave a comment below. I'll be here to help you out. You have a good one.