Hello Community Users, we just wanted to pop in and add some clarity to this thread. If this is the first return in QuickBooks and you wish to claim for purchases made in a previous period, the best way to do this is to do an adjustment on the return. Make sure to check this article for more information about reclaiming the VAT: Set up and record purchase taxes. Please take note that backdating and reclaiming your VAT on purchases has an expiry date. You can visit the HMRC website here for more information about this process.
You can record your Purchase VAT by following these steps:
- Go to Taxes and select VAT (Take me there).
- On the VAT page, select Prepare return for the period you are submitting for.
- Select Adjust in the VAT line that you want to change.
- Choose an Adjustment Date and Tax rate.
- Note: If you do not select the appropriate VAT code it will not be reflected on your reports or your return.
- Select the Adjustment Account ▼ dropdown menu and choose an account.
- If you are making the adjustment because you received credit and you owe less VAT to the government, choose an income account that you created for this purpose.
- If you are making the adjustment to include a fine, penalty, or interest on a VAT return, choose an expense account, such as Interest Expense or Non-deductible Penalties.
- In the Adjustment amount section, enter the amount of the adjustment.
- Enter a Memo to describe the adjustment. Although optional, this is good practice as it will help to identify the adjustment if needed. See more detail in this article
