How do I record my expenses when my supplier already has my VAT number and does charge me VAT?

ilya.vip · ‎February 04, 2020

So normally if I was to spend £12 I'd record it as £10 + 20% VAT. My supplier has my VAT number now and charges me £10. Do I record it as £10 + 0 VAT? Thank you!

KlentB · ‎February 04, 2020

I'm here help you in recording your expenses, ilya.vip.

If your supplier charges you only £10 and there should not be any VAT applied, we can choose the NO VAT for the VAT code. Just heads up, 0 VAT and NO VAT have different tracking in your reports. If it is an EU purchase it may be a different code is needed however. If that is the case please reply back with further details of the transaction and we can guide you on the right code to choose. We'd always recommend double checking with HMRC or your accountant if you are unsure of which code to use.

Reach out to me again if you have further questions about QuickBooks or need more help in managing your expenses. Have an awesome week ahead.

View solution in original post

KlentB · ‎February 04, 2020

I'm here help you in recording your expenses, ilya.vip.

If your supplier charges you only £10 and there should not be any VAT applied, we can choose the NO VAT for the VAT code. Just heads up, 0 VAT and NO VAT have different tracking in your reports. If it is an EU purchase it may be a different code is needed however. If that is the case please reply back with further details of the transaction and we can guide you on the right code to choose. We'd always recommend double checking with HMRC or your accountant if you are unsure of which code to use.

Reach out to me again if you have further questions about QuickBooks or need more help in managing your expenses. Have an awesome week ahead.

paul72 · ‎February 06, 2020

Hi @ilya.vip

Why isn't your supplier charging VAT?

Is this a purchase from another EU country?

If so, the VAT still needs to be accounted for but as a Reverse Charge - you cannot simply enter as 0% or NO VAT.

VAT Code (& where the amounts are entered on VAT Return) is different depending on whether it's Goods or Services that you're purchasing.

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How do I record my expenses when my supplier already has my VAT number and does charge me VAT?