To claim back the VAT from a vehicle or equipment purchase when there is no bank transaction visible in your Business Finance Assistant account, please refer to the example below:
- VAT to be claimed back: £5,600
- Amount of purchase including VAT: £33,600
- Amount of purchase excluding VAT: £28,000
Create a new bank account for the transaction:
- Select 'Connect Bank Account', either from the 'Recent Transactions' widget on your homepage or from your 'Bank Transactions' screen
- Select 'Upload Statements Manually'
- When the new window opens, select the 'Account Type' and populate the required fields
- The Nickname of the account can be 'VAT-only Purchase'
- Select 'Done'
Import the VAT-only transactions manually:
- From the Bank Transactions page, press the 'Actions' button
- Select 'Add transaction manually'
- Enter the amount of -£5600:
- Press the 'Split/Attach' button to open an expanded view of the transaction
- Change the amount in the white box on the right to the gross price of the vehicle: £33,600
- Apply the appropriate category, the supplier and apply 20% VAT
- Press the 'Split Customer' button
- Enter the net price of the purchase to balance out the transaction
- Apply the relevant category and one of the 0% VAT rates
- Press 'Justify' to add a photo of the supplier invoice
- Press 'Done'
- Press 'Confirm'
- Go to your VAT return to see the VAT-only charge of £5,600 as expected: