Claiming vat on items bought before VAT rgistration

DNA Carpentry · ‎March 28, 2019

Hi there,

How do you claim VAT on items bought prior to VAT registration?

It states on HMRC website that you can claim up to 4 years worth but I don't know how I go about this on Quickbooks. Can anyone advise me on this matter please?

Many thanks, Brad.

emmam6 · ‎August 03, 2022

Hello Community Users! Just adding some clarification on the process of claiming VAT on items bought prior to VAT registration(that fall within HMRC guidelines) when it is your first VAT return you will need to make an adjustment on the return in Quickbooks to account for that. If it is not your first return in Quickbooks you can just add in the expense with the date it was purchased and it will create an exception in the return. This can not be done in the very first return hence the need to do an adjustment

In QuickBooks Online, you can adjust your current VAT account to correct errors on past returns if they are:

below the reporting threshold
not deliberate
for an accounting period that ended less than 4 years ago

For the detailed steps on how to record the adjustment, please see this article: Adjust your VAT liability

You'll be able to record that as a tax adjustment. Post your comments below on how we can help you more about recording taxes. We are here for you!

View solution in original post

Rasa-LilaM · ‎March 28, 2019

Greetings, DNA Carpentry.

I can see this is your first question here in the Community, so let me take the time to welcome you to the Quickbooks Family. Let me provide some insights on how to claim VAT for your items.

If you already entered the products in QuickBooks, you'll have to manually copy the data from the VAT return and enter them through the MTD Bridging Tool. Here's how:

Go to Taxes on the left panel, then choose VAT.
In the Returns section, select the return you’re working on.
Click on Submit return under the Action column.
In the Prepare VAT return page, select the correct Accounting period.
For the Start date, enter the period when you want to claim the tax.
In the End date field, enter the current tax filing period.

However, if you haven't recorded them, follow the steps in this article: How to enter historical information. Once done, enable the MTD feature in QuickBooks so you can submit the return through that option.

Here's how:

Go to Taxes on the left panel, then click on Let's go.
Click on the Gear icon at the top, and choose Account and Settings panel.
Click on the Pencil icon for Making Tax Digital, then choose Learn how to connect.
On the Get started with digital tax page, click on Let's go.

Then, let’s go ahead and authorise QuickBooks to interact with the HMRC. To visually guide through the process, click on this link and proceed to Step 2.

After completing this process, you can now submit the VAT return.

Those resources should get you on the right path.

If you have additional questions about the process, leave me a comment. I'll be right here to assist further. Wishing you the best.

emmam6 · ‎August 03, 2022

Hello Community Users! Just adding some clarification on the process of claiming VAT on items bought prior to VAT registration(that fall within HMRC guidelines) when it is your first VAT return you will need to make an adjustment on the return in Quickbooks to account for that. If it is not your first return in Quickbooks you can just add in the expense with the date it was purchased and it will create an exception in the return. This can not be done in the very first return hence the need to do an adjustment

In QuickBooks Online, you can adjust your current VAT account to correct errors on past returns if they are:

below the reporting threshold
not deliberate
for an accounting period that ended less than 4 years ago

For the detailed steps on how to record the adjustment, please see this article: Adjust your VAT liability

You'll be able to record that as a tax adjustment. Post your comments below on how we can help you more about recording taxes. We are here for you!

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Claiming vat on items bought before VAT rgistration