Thank you for contacting Community.
There is no reason that the option to add VAT as a tax should not be available on either Expenses transactions or Supplier Bills, especially if the option is available for sales invoices. Of course you would first need to specify that you were VAT registered with QuickBooks.
You can check this by Clicking Taxes on the left of the page and click the dropdown arrow in the top right corner next to Edit VAT and selecting Edit Settings. Make sure all of this information is filled out particularly the VAT registration number.
Another potential reason the VAT option may not show up on Bills or Expenses would be if the transactions was set to No VAT by default. If you go into the transaction you are wanting to add VAT to, on the left above the transaction lines there will be a drop down box with the options No VAT, Exclusive of VAT and Inclusive of VAT. If No VAT is selected then the VAT rate column will not be included in the transaction.
The option to add VAT should always be available on any kind of Expense or Supplier Bills once it has been turned on. Though it may also be worth checking the specific Suppliers Details as there is an option to select a default VAT code for that supplier. If that is selected as No VAT then the the column would not appear on any transactions to that specific supplier.
Hopefully this will resolve the issue for you.
Let me know if you have any queries. Or, if you'd like to go through this over the phone, you can call our dedicated team who will be happy to assist you. Our contact details can be found here along with our opening hours.
I’ve got a similar problem when I try to add VAT to train travel expenses that are exempt from VAT to my customers invoice.
As an expense HMRC stipulate I must add VAT to the train fare.
I link the receipt and payment for the fare to the customers account.
I then change the VAT charge to 20%.
The choices were inclusive or exclusive of vat but QuickBooks assumes the amount I’ve paid now includes VAT so if I use this for billing I lose the VAT. So a £12 train fare shows on the invoice as £10 + £2 VAT.
How do I get the invoice do show it as £12 + £2.40 VAT?
Do you have access to Facebook or Twitter so you could PM us a screenshot of this transaction?
Thanks for joining the Online Community, PR4.
I want to ensure you can enter the correct amount and tax on the invoice.
Yes, you can send a private message through our Facebook page. This is one of the platforms where you’ll find help about QuickBooks.
You can click on this link, and select either Contact Us or Send Message and one of our social specialists is going to assist with your VAT concern.
After reaching out to them, the transaction should show the correct amount including the tax.
If there’s anything else I can help you with, leave a comment below. I’ll be right here to assist you further. Enjoy the rest of your day!
Im having the same problem. I have done the above steps. Is there anything else i can do to get the option for the vat to come up on my supplier bills?
Hi, PR 1,
Thanks for joining the thread and validating the results.
This time, upon creating a Bill transaction make sure that in the Amounts are section, you’ve chosen Exclusive of Tax or Inclusive of Tax.
However, if the option to add VAT on your supplier bills is not available, can you please send us a screenshot of your Bill page? This is for us to further check it here in our end.
Looking forward to hearing from you. Have a great day!
I have the same issue. What is the current answer? At the moment I am manually calculating the VAT I need to add when recharging a client with an expense that (was) exempt from VAT when I made the purchase, but for which I need to add VAT when I recharge to a client. Isn't this automated? It seems silly if it isn't
When creating an invoice for a billable expense, it should allow you to change the VAT code which should then calculate the VAT for you. To confirm, when you create these invoices, does it not allow you to change the VAT code from Exempt?
I think I've resolved this.
When you open your invoice make the invoice VAT Exclusive. Then add the linked expense. QuickBooks then changes the Invoice to Vat Inclusive again bizarrely. Change it back then make the expense Vatable. You need to do this routing for every expense you add to the invoice. If you forget you need to unlink the expense.
I find this quite odd as surely a lot of costs are non-vatable you then need to add VAT to or you purchase items from non Vat registered suppliers.
Especially with Digital VAT you can't get away with doing any VAT outside of QuickBooks.
Can you make this easier in a fix?
Thanks for coming back to the Online Community, PR4.
I appreciate you letting me know the workaround steps you’ve taken for the transaction to show the correct amount with tax. This will help other customers who are also experiencing a similar issue.
You'll have to update the Default tax rate selection settings and set it to Exclusive to tax. This way, you don't have to manually change the VAT selection.
After updating the information, you can now create an invoice without manually changing the tax rate. For future reference, I'm also adding a link with detailed information on how to set up and edit VAT settings.
These steps should help move forward.
Let me know if you get the chance to try all these suggestions and what the results are. I'll jump right back in to help.
I checked the setting and the default tax rate is already set as Exclusive to Tax. Is it a bug in the system when you add linked expense items?
When you add billable expenses to a customers invoice the VAT code that you set on the expense will transfer over as the same code e.g. No VAT or Exempt. If you require this to be something different you will then have to manually change the tax code.
What ever tax basis you create the expense with, inclusive, exclusive or No VAT and then add it to the invoice the invoice tax basis will be changed to that of the expense.
There is not a bug in the system, this was introduced to ensure the there is no mixing of taxation methods.
Have a look through my fix comment.
I know I need to change the VAT code but it changes the whole invoice to inclusive of VAT each time you pull the linked expense across.
Shall we arrange to go through it on the screen?
Within the product, could you please select the help button? Here you can enter your issue as the topic and one of our support line agents will call you back. This way, you will be able to show the agent through a screenshare so we can get to the bottom of this quicker for you.
The VAT column in any vendor transaction like Expense, Bill or Cheque have a VAT column. After you set up your sales tax, this column will appear to the mentioned transactions and sales forms as well.
With regards to Billable expenses, you have to turn on this feature first so you can assign a customer to the expense.
Let me know if you need more help.
I'm new to QB. I have just noticed that when I go to add a bill onto the system, there is no box to add the VAT amount into? Where am I going wrong?
I am not VAT registered, so no VAT is added to my invoices BUT when I get suppliers invoices or expenses, some of these have VAT on - how do I show this on the system?
You can set up the Taxes/VAT centre, you don't have to enter any information, this will then give you the option when creating expenses/bills to select inclusive/exclusive/No VAT and the relevant VAT code, usually 20%S. If you do set up the taxes section you are unable to de-activate it.