Hello there, Nthuli.
QuickBooks is not designed to track sales tax automatically on non-sales transactions. This means that the program doesn't have a specific report for VAT on purchases. When it is time to pay their sales tax, they'll have to use the Chart of Accounts to can see the liability that has been accrued.
We can track sales tax on purchases as an expense and as a liability. Here's how:
- Go to the Company menu and then select Chart of Accounts.
- Select New.
- In the Choose Account Type window, select Expense then click Continue.
- Enter the Account Name and other details then click Save & Close.
As a liability:
- Go to the Company menu and then select Chart of Accounts.
- Select New.
- In the Choose Account Type window, click the Other Account Types drop-down then select Other Current Liability.
- Click Continue.
- Enter the Account Name and other details then click Save & Close.
Here's an article you can refer to for more details about setting up and recording purchase taxes.
Additionally, I've included the following materials below to help you organise your chart of accounts in QuickBooks Desktop:
Let me know if you need anything else. I'm always here and ready to help. Have a nice day!