Hi Paul, thanks for your post - the steps to record the 100% VAT invoice in QuickBooks are listed below, this will create an expense for the total amount of VAT charged that will post to box 4 of the VAT return and will create an entry to match to the transaction in your bank if you have this connected.
1) Select New + > Expense (check that you enter the bank account that the amount was debited from in the Payment account field and the date the amount was debited in the Payment date field)
2) On line one in the category column select the purchases account > in the Amounts are field enter Exclusive of Tax > in the amount field enter 0.01 > in the VAT column enter 20%S (20%)
3) On line two enter the same purchases account as line one in the category column > in the amount column enter -0.01 > in the VAT column enter Exempt
4) Enter the amount of VAT you would to reclaim in the VAT field between the Subtotal and Total.
