I entered a supplier invoice on the system which showed the VAT amount. However the payment is showing up in banking as no VAT. How can I change this?

Hi @adschauffeurserv 

You don't.  The VAT is on the Bill/Invoice not on the Payment.

Match the Payment to the Bill & you'll see everything clears.

If you mark the Payment as VATable too, then only 5/6ths of it will be used to clear the Bill & 1/6th will go the VAT Control account.

Hope this helps.

Hello adschauffeurserv, thanks for joining the Community. 

The VAT element is accounted for at a transaction level (in this scenario, on the bill). If this was included on the payment, the VAT would be duplicated. Therefore, you can simply go ahead and match the payment to the open transaction from your bank feed. To learn more on VAT in QuickBooks, click here. :)

Thank you.  It threw me because I noticed it on the banking screen and I'm sure not all payments show up saying no VAT but what you've said makes sense

Thanks adschauffeurserv - if you don't have an automated match or an open transaction to match the payment to, you can add this from the banking directly into QuickBooks and we'll create a sales receipt (for payments received) or an expense (for payments made). When adding the transaction in this scenario, you'll be able to select a VAT code. :)