I bought a car and paid with my personal account. May I claim VAT on my LTD company?

Hello, ayteking.

Thank you for reaching out to the Community. I understand that you purchased a car using your personal account, and you want to know if you can claim the VAT on your company in QuickBooks Online. I'm here to help clarify this for you.

In general, if you make a business purchase using your personal account, you may be eligible to claim the VAT (Value Added Tax) on your company, provided that the purchase is directly related to your business activities and you have the necessary documentation to support the claim.

To properly record and claim the VAT on your LTD company in QuickBooks Online, you should follow these steps:

1. Gather Documentation: Make sure you have the necessary documentation related to the car purchase, such as the invoice or receipt, which clearly shows the VAT amount paid.
2. Create an Expense Transaction: Go to the (+) New icon in QuickBooks Online and select Expense. Enter the necessary details for the transaction, including the date, vendor, and the total amount paid (including VAT). Choose the appropriate expense account for the car purchase.
3. Allocate VAT: You must allocate the VAT portion separately in the expense transaction. Click on the VAT field and select the appropriate VAT tax code associated with the purchase. This will ensure that the VAT amount is appropriately recorded and tracked.
4. Categorize the Expense: Choose the appropriate expense account to categorize the car purchase. It's recommended to consult with your accountant or tax advisor to determine the correct expense account for vehicle purchases based on your specific circumstances.
5. Save and Reconcile: After entering all the necessary information, save the expense transaction. This will record the purchase and VAT amount in your QuickBooks Online account. When reconciling your accounts, ensure that the expense and VAT amounts match the documentation you gathered.

Remember, it's important to consult with a tax professional or accountant to ensure you follow the correct tax regulations and guidelines specific to your country and business. 

I'm also adding some links for future reference:

• Transfer funds between accounts
• Mixing business and personal funds

If you have any further questions or need additional assistance, please feel free to ask. I'm just a post away. Have a great day!