Create a VAT-only purchase invoice

You can record an invoice from a supplier that only contains VAT, if you need to. For example, when paying deposits for large items.

1. From Purchases, choose Purchase Invoices, and New Invoice.
2. Enter the Supplier, Invoice Date, Due Date, and a Reference if required.
3. Don't add a Product / Service.
4. Enter the Description, for example, VAT only or VAT adjustment.
5. In the Ledger Account list, choose your usual ledger account for purchases.
   
   TIP:

   No value is entered against the ledger account, as the invoice has a zero net value.

6. Leave the Qty/Hrs and Price/Rate boxes as 0.00.
7. Choose the relevant VAT Rate.
8. Enter the VAT amount in the box provided.
9. Select Save.

Sage automatically records the VAT amount against the VAT on the Purchases ledger account. This shows on your VAT return and you pay your VAT as normal.