VAT Flat rate on Purchases

Accounting
1

I use the Flat rate VAT scheme. I enter purchases showing the gross amount. However, purchases created from a linked account show the VAT, which then appears in my VAT return as VAT to be reclaimed. Do I just use an adjustment for that amount, to return it to zero, or do I need to go back and change all the purchase records?

2

You could use an adjustment but I think it’s better if we remove this for you manually. The purchase that was imported shouldn’t have VAT on there, we need to look at this. Leave this with me I will get back to you in 30 mins.

3

I did notice that you have a bunch of bank tagging rules creating purchases with 20% vat. A few of these are appearing on your next VAT return. Would you like me to zero rate all these tagging rules?

EDIT: The VAT bearing purchases have now all been removed. Let me know if you’d like me to zero those bank tagging rules?