Hi jothompson-harri, thanks for reaching out to the Community
When recording a VAT-only transaction in QuickBooks, both lines should use the same account so that the net impact to the account is zero. To record the transaction:
1. Select + New and Expense.
2. You can either choose a payee or leave the field empty.
3. On the first line of the expense, choose any of your Expense accounts.
4. In the Amount field, enter the VAT exclusive amount
5. Select 20.0% S as the VAT code.
6. On the second line, reverse the amount by entering it as a negative value (-)
7. Select Exempt as the VAT code.
8. Check if the amount in the VAT amount box is the amount you need.
9. The total of the expense will be 0 and you will see the VAT to be included in the return. Edit the amount in the VAT box to whatever you need it to be.
10. Under Subtotal, enter the VAT amount into the VAT box and Save the expense.
This will create a 100% VAT transaction that will show in Box 4 on the VAT return.
