I am working in UAE and have VAT. I have setup quick book online for 5% VAT on sales and purchases (expenses) Have entered a transaction of sales with VAT 5% but the Tax report does not shows the VAT under the section paid on Purchases. the expense incurred is also a purchase so I believe it should appear, isn't it ?
I appreciate your time visiting our forum for your VAT question, @arif hamid,
If you're referring to the information on the VAT Detail Report, this shows the lists of transactions that are included in each box on the VAT return. Therefore, if you assigned the right VAT code to those purchases, then it should show the amount in there. See this:
If you're unable to see it, check the Report Period and Accounting method is correct. You can also check the transaction if it has the right code. This is how it should look like:
If everything is assigned correctly and the report still shows no VAT for purchases, try to access your account in a private window. We need to check if this issue is caused by the data in the cache.
Use these keyboard shortcuts to lauch private browsing:
Google Chrome: press Ctrl + Shift + N
Mozilla Firefox: press Ctrl + Shift + P
Safari: press Command + Shift + N
Clearing the cache can also help unexpected issues in QuickBooks Online. This will help remove the history log, so you can start with a clean slate.
In the meantime, here are some reports to help you with VAT processing in QBO:
In regard to confirming the appropriate account of your VAT set up, I highly recommend consulting your accountant. They are experts in providing proper guidance on this and this is to avoid messing up your books.
You can check out through this link to find certified professionals in your area: Find a ProAdvisor
I'm also adding some articles related to VAT in QBO for your reference: