Sometimes it is just not possible to obtain a correct VAT receipt from a supplier. In this case you can not claim the VAT portion as input tax but will still want to record the business expenditure.

My logic suggests it should go through Solar Accounts as normal with a 0% rate rather than out of scope and 0%. The purchases total then goes up without changing the amount of VAT paid (and therefore claimable as input tax).

Is this the best way to record this within Solar Accounts?

Hi Steve,

Yes, I think that such purchases should appear on Box 7 of your VAT return but should not affect Box 4. (However you should check this with HMRC on 0845 010 9000). In that case you are correct to set the VAT rate to 0% and leave the VAT Treatment as 'Purchase of Goods or Services from UK Supplier'.

Regards,

Great, many thanks.