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LisaSweeting
May 9, 2025
Question

VAT

  • May 9, 2025
  • 1 reply
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Hi I have paid the VAT on my car repairs the actual work was paid by the insurance company but I was responsible just for the VAT. It shows as a transaction in QB but I need to log it as a 100% VAT payment as I should be able to claim back the whole amount. How do I log this in QB and how do I record it as 100% VAT for the purpose of the VAT submission. 

1 reply

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LouiseG12
May 9, 2025

You'll need to enter a two-line transaction to log the VAT payment in QuickBooks Online (QBO). I'll provide the outlined steps below to accomplish this task.

 

The type of transaction will depend on how you want it to be recorded in your books. But ensure to enter the full VAT payment upon creating a transactions to receive a 100% VAT payment.

 

Here's how:

 

1. Go to the +New button, then choose the desired transaction type.

2. In the first line of the transaction, pick the appropriate account, input the rate as £1, and select the full rate of the VAT that you're going to use.  

3. In the second line, select the same account again, set the rate at -£1, and apply the Exempt VAT code. The total value of the transaction will initially show as £0.

4. You can then edit the amount in the VAT box to the required value.

5. Hit Save.

 

Furthermore, I will provide this article that explains how to adjust your VAT liability, what happens after you make an adjustment, and key points to remember before submitting a VAT return.: Make VAT adjustments in QuickBooks.

 

I'm more than willing to help if you have any other concern with your VAT in QBO. I'll ensure your needs are taken care of.

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