I cant create a bill with VAT on purchase. In the bill there is no such item?

Hello, Elena Roshchupkina1.

I'm happy to share a solution on how you can add VAT on the bill for your audit fees. 

It looks like the VAT feature isn't turned on yet, which is why you're unable to attach the VAT amount with the fees. Here's how to turn it on: 

1. Go to Taxes.
2. Click the Set up tax button. 
3. Hit Next, then set up your VAT settings. 

After setting it up, you can start assigning VAT on your bills. On the Bill creation page, simply select Exclusive of Tax or Inclusive of Tax under Amounts are. Then, choose a rate under the TAX column. 

Need help or references regarding the VAT setup? Please check this article for a guide: How do I set up sales GST/VAT rates and use them on forms? (International QBO).

You can also browse other help articles here. I'm sure they'll guide you on managing your transactions and financials in QuickBooks Online. 

Should you need help again, you can post other questions in this thread. Happy to lend a hand. 

Hello Jamespaul!

Thank you for help, and finally i found settings and created 3 bills of audit fees with VAT, everything is ok.

1. But I dont understabd why this tax amounts have been included to PL in separate line as "

VAT on purchases Expense" ? I was surprise why this amount not in Balance sheet?

2. And in "Taxes" I didnt see amounts of VAT of Purchases?

Allow me to take over and share some information on your VAT returns, Elena Roshchupkina1.

Expenses will appear in the Profit and Loss since it's not yet a liability.

When you want VAT to only show on your transactions and reports, select 'Expenses' in the Account field when editing your VAT settings. If you want to show on the VAT return, choose 'Liability'.

Also, when you change the basis of your VAT reporting, the tax that is not yet paid on transactions becomes due in the current period.

QuickBooks Online calculates the difference between the VAT you owe for the current period in your initial accounting basis. And, the amount you owe on your new basis.

Check out these articles here about Sales GST/VAT:

• How do I set up sales GST/VAT rates and use them on forms? (International QBO)
• Applying Sales Tax to Transactions and Sales Forms.

Stay in touch with me if you need additional information about VAT returns. I'll be around to help you.

@MaryLandTThank you for help and I understand about VAT on sales. I dont understand about VAT on purchase.

Why VAT from purchase in my PL? These VAT have to reduce my VAT liability, i mean VAT from Sales minus VAT from purchases.

Let me share additional information, @Elena Roshchupkina1.

When setting up VAT, you'd want to make sure to mark the reclaimable tick box. This way, you can apply VAT to your purchases. I've added a screenshot for your reference. 

Also, I'd recommend consulting with an accountant so you'd guided properly in setting up and applying it to your transactions. 

Stay in touch with us here if you have other questions or concerns in tracking your expense taxes. I'm always here to help.​​​​​​​

Hi!

I did the same thing - tick the reclaimable option.

And yet the only option showing for VAT on purchases is Expense. No liability

I'm here to make sure you can choose Liability from the Purchase page, @iamAlessa.

I appreciate you for ticking the Purchase tax is reclaimable option in your VAT settings. Let me share more details about your taxes in QuickBooks Online.

When the Purchase tax is reclaimable box is checked, you can choose Liability from the purchases Account drop-down. Just make sure to log in and log out so the settings will take effect. Please refer to the screenshot below for your reference.

If the issue persists, you can create duplicate rate if needed. Thus, you can choose the exact account. 

Once you have everything in order, you can now use your sales tax on your transactions and sales forms. 

Feel easy to click these links below to know the different VAT updates, reports, and other related topics. 

• VAT Feature Update FAQ

• Create or delete a tax adjustment

Leave a comment below if you need more information about VAT. I'll be there for you. Take care.