How do I input a value which is 100% VAT payment

colin5 · ‎February 23, 2020

emmam6 · ‎October 04, 2022

Hello Community Users!! Just wanted to pop in to confirm the process for creating a 100 percent VAT transaction is as follows;

1.click on the + sign and select the transaction type that you need.

2.On the first line of the transaction, choose the account you want to use. For the rate, enter £1, and for the VAT code, select the 20% Standard code.

3.On the second line, select the same account. For the rate, enter -£1, and choose an Exempt code.

4.The total of the invoice will be 0. You can then edit the amount in the VAT box to whatever you need it to be.

5.Save the transaction

We have included the help article on this here as well. Any questions just ask.

View solution in original post

BettyJaneB · ‎February 23, 2020

Hello there, @colin5.

You'll need to enter the full VAT rate upon creating your transactions to receive a 100% VAT payment.

To do that, click on the + New icon at the left pane and select the transaction type that you need. Once done, enter the information needed on the entry and select the full rate of the VAT that you're going to use. Please see the sample screenshot attached for reference:

I've added here some great links that you can visit about entering VAT in QuickBooks Online and on what are the common codes to be used:

Thanks for visiting the Community. Please let me know if you have any other questions. I'm here to help. Take care!

paul72 · ‎February 24, 2020

2+2=5

Is this a VAT amount you've paid on an import?

or maybe a repair where the insurance company has paid the principal?

You effectively have to enter a two-line transaction.

(1) ... Value of £100.00 with S20% VAT = £120.00

(2) ... Negative value of £100.00 with 0% VAT = £100.00

This will leave you owing the £20.00 of VAT & show correctly on your VAT return.

emmam6 · ‎October 04, 2022

Hello Community Users!! Just wanted to pop in to confirm the process for creating a 100 percent VAT transaction is as follows;

1.click on the + sign and select the transaction type that you need.

2.On the first line of the transaction, choose the account you want to use. For the rate, enter £1, and for the VAT code, select the 20% Standard code.

3.On the second line, select the same account. For the rate, enter -£1, and choose an Exempt code.

4.The total of the invoice will be 0. You can then edit the amount in the VAT box to whatever you need it to be.

5.Save the transaction

We have included the help article on this here as well. Any questions just ask.

mikey2703 · ‎February 07, 2023

Hi- I have done a 100% vat payment as described- ie +£1.00 and -£1.00 etc , however the 100% vat claim is for an item bought on finance. My accountant said to claim 100% vat so I showed it as an expense and it was put through on the vat return. However my book keeper has said the bank no longer balances as the 100% vat item claimed did not go through the bank. How do I amend amend the 100% vat claim to enable it to be in the vat return but keep the books balanced. Entering it as an expense throughs the books out by the amount claimed. What other option is there?

John C · ‎February 07, 2023

Hi mikey2703 Your initial request was asking how to create a 100% VAT payment. If you've paid an amount which is purely VAT e.g. you've purchased a vehicle and an initial payment was the VAT element then the steps previously posted are correct. If you're wanting to enter an reclaimable amount that isn't an actual payment then this would be done by creating an adjustment, we've included an article on how to create an adjustment. https://quickbooks.intuit.com/learn-support/en-uk/audit-log/adjust-your-vat-liability/01/239374

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How do I input a value which is 100% VAT payment