Hello, our business can only claim back 38% of any VAT we are charged. This causes a problem with quickbooks as there is no easy way for the amount to be tracked using quickbooks. So we have to use a spreadsheet and upload the figures like that. Has anyone got any ideas as to whether I can get quickbooks to code 38% of 20% VAT on purchases? Thank you!
Hi there, @lkoups.
I'd be happy to show you how to add Tax rate of 38% on VAT Purchases.
After setting up your VAT settings, you can also add a Tax Rate in the Sales Tax Centre. You can refer to the steps below.
I've also added some screenshots for additional reference.
Once done, you may apply the added VAT rate on the purchases you're going to make. Here's a sample Bill transaction to see where you can enter the rate:
You may consider checking this article for your future reference in case you want to correct some errors on your past VAT returns: Adjust your VAT liability.
I'll be here if you have other questions regarding VAT in QuickBooks. It would be my pleasure to help you. Have a wonderful day ahead.
Thank you- however I think that you may have misunderstood me- so I need to calculate a rate that is 38% of 20%.
So if someone charges us £1000 plus 20% VAT that is £200 in VAT (total £1200)
But we can only claim back 38% of this VAT amount which is £76
I want QuickBooks to calculate the £76 in VAT but if I choose 7.6% then the bill above comes out at
£1000 plus £76 which is £1076 not the £1200 that was charged to us.
So it gets tricky..
Thanks for getting back to us, @lkoups.
Allow me to jump in and share additional details.
Are you registered as a Flat Rate Vat Scheme? If so, you can set up the FRS VAT and enter the correct percentage from there. Once you use it, you pay VAT as a fixed percentage of your VAT inclusive turnover. The actual percentage you use depends on your type of business. Let me guide you how:
You can read through these articles for more insights about how the VAT rates work in QuickBooks:
Feel free to tag my name if you need further help. I'd be glad to help. Take good care!
Welcome to QuickBooks Community, Andreas Alkiviades Andreou. I'll share information about the VAT rate in QuickBooks Online.
The reason why there is no way to tick purchases is that you might create the VAT Agency in Quickbooks Online without selecting the Claim VAT on purchases option. Since you're using the QuickBooks UK version, you don't have to create new VAT codes because QuickBooks Online automatically sets up a list of common VAT codes for you.
Then, VAT on standard purchases can be claimed back, however, VAT cannot be reclaimed back on your purchases under the FRS since it is deemed the discounted fixed rate already considers this and has taken into account the VAT purchases.
For additional information, you can click the articles below. This provides different VAT codes, rates, and how it works.
Please refer to this article to see steps on how you can turn of VAT and some helpful links about VAT in QuickBooks Online: Set up and edit VAT settings, VAT codes, and VAT rates.
If there's anything else you need help with, please let me know. I'm always here to answer it for you. Have a great day!