VAT on Purchase

Hello @Hiroshi FK,

In QuickBooks Online, you'll have to make sure your custom tax rate is configured to track VAT on your purchase. This way, it'll display to correct amount of collected tax while reviewing your return in the tax center. Let me show you how.

To start with, here's how you can configure your custom tax rate to track VAT on your purchases:

1. Go to Taxes.
2. Under your tax agency, select Edit rates.
3. Select your custom tax rate.
4. On the ACTION column, select Edit.
5. Review and enter the correct rate in the Purchase rate (%) field.

But if you can confirm your tax item is set up correctly, let's consider going back to all your created purchases and make sure they're associated with the correct Vat rate. To do so:

1. Open your purchase transactions in question, one at a time.
2. Go to More.
3. Select Transaction Journal.
4. Under TAX, review and make sure the rate of the VAT item used is correct.

Additionally, I've also included this reference helpful with a compilation of articles you can use while working with us: Tax Topics for QuickBooks Online International.

Don't hesitate to post again here if you have further questions in managing your QuickBooks account. I'm always here to help. Have a good one.

Thank you for your comments.

I followed the each steps, but it still does not show the VAT on purchase.

The journal entry looks correct as attached screenshot below.

What should I do next?

Thanks for coming back, Hiroshi FK.

I appreciate you for performing the steps provided by my colleague. There are times when a browser's cache data becomes full of frequent access to web pages or damaged. This causes the odd behavior where the Tax Center does not show the VAT on Purchase. To better isolate this issue, let's try signing in to your QuickBooks Online (QBO) account using a private or incognito window. This mode doesn't use the existing cache data and helps us confirm browser-related issues. Here's how:

• For Google Chrome browser: Ctrl + Shift + N
• For Mozilla Firefox browser: Ctrl + Shift + P
• For Safari browser: Command + Option + P

Then, try going back to the Tax Center to see the VAT on purchase transactions. If it works, go back to your regular browser and clear the cache to delete those temporarily stored files and browsing history. The overtime collection of data can create corruption, however, removing this should fix the issue. You can also use supported, up-to-date browsers to roll out the possibility of a browser-related issue. 

If the same thing happens, I'd suggest contacting our Customer Support Team. They'll pull up your account in a secure environment and investigate what's causing this issue. Here's how:

1. Go to the Help menu at the upper right.
2. Select Contact Us.
3. Enter your concern.
4. Click Let’s talk.
5. Choose Start a chat. and type in your contact info.

Visit our QBO Help Article page to learn more about running your business in your account.

I'd like to know how you get on after performing the steps or after reaching out to our support, as I want to ensure this is resolved for you. Just reply to this post and I'll get back to you. Take care always.