Hello Community Users! Just adding some clarification on the process of claiming VAT on items bought prior to VAT registration(that fall within HMRC guidelines) when it is your first VAT return you will need to make an adjustment on the return in Quickbooks to account for that. If it is not your first return in Quickbooks you can just add in the expense with the date it was purchased and it will create an exception in the return. This can not be done in the very first return hence the need to do an adjustment

In QuickBooks Online, you can adjust your current VAT account to correct errors on past returns if they are:

• below the reporting threshold
• not deliberate
• for an accounting period that ended less than 4 years ago

For the detailed steps on how to record the adjustment, please see this article: Adjust your VAT liability

You'll be able to record that as a tax adjustment. Post your comments below on how we can help you more about recording taxes. We are here for you!