How do I make a VAT adjustment to claim 100% input tax?

We have a bill for input VAT where a supplier had incorrectly not charged VAT. How do I make an entry to claim this input tax ?

Level 14

Hello Marypippins,

Welcome to the Community page,

If you follow the steps below to record this In your account for a VAT Only / 100% VAT transaction.

Recording a 100% VAT bill can be a bit tricky in QuickBooks Online, but don't worry, we have a step-by-step guide on how to record it.

To create a 100% VAT Bill:

1. Select New+

2.Bill

3. in the Payment date field >

4. on line one in the category column select the purchases account

5.In the Amounts are field enter Exclusive of Tax

6.in the amount field enter 0.01

7. in the VAT column enter 20%S (20%)

8.on line two enter the same purchases account as line one in the category column >

9. in the amount column enter -0.01

10. in the VAT column enter Exempt

11.enter the amount of VAT you would to reclaim in the VAT field between the Subtotal and Total.

12. save and close

13.Then make payment on the bill

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