VAT paid on purchases incorrect after inputting business expenses paid from personal account

[fns139]

Hi there,

I am new to Quickbooks Online and have recently inputted 6 months of expenses from the date we set up our business last year.

When first setting up the business, we (two directors) paid for some business expenses with personal cards, so I followed the guidance in this article to record these:

https://quickbooks.intuit.com/community/Help-Articles/How-to-pay-for-business-expenses-with-personal...

With further advice from QB support, I inputted any VAT applicable expenses with 3 lines: 1 expense category debit, 1 VAT Control debit, and 1 owner's contributions credit (separate equity accounts for the two directors) - I've attached a screenshot of an example.

Now, however I've noticed that my VAT Control account does not match up to the VAT paid on purchases - none of the journal entries that I inputted are showing here as VAT that I can reclaim. As these are business expenses, I should be able to claim the VAT back but I don't know the best way of going about getting these transactions to show in my VAT return.

Perhaps I'm missing something, but I've followed the advice that I can in the community and am at a bit of dead end! As a newbie, any simplified explanations of the best course of action would be hugely appreciated!

Thanks in advance,

Pip

[TaliaI · Accepted solution]

Hello Pip.

Welcome to the Community - thank you for your question!

Transactions will only show on your VAT return if they have a VAT code applied against them - even if you post them to VAT control. I can see from your screenshot that none of the lines on your journal have a VAT code selected, which will be why the amounts are not showing as reclaimable.

Please let us know if you have any further questions!

Thank you,

Talia