Hi, My business allows me to sell products at zero rate vat and I am VAT registered. This allows me to reclaim VAT on all my purchases made for the company. I am about to make my first MTD (and VAT) submission but need to reclaim vat from purchases made in the past. I understand that I go into the prepare VAT and make an adjustment to box 4 but which account do I choose from the drop down. Other q&a answers say pick an income account but these are all purchases which are made against items logged in my equipment chart of accounts. Should I select my equipment chart of accounts or should I create a new account purely to hold this adjustment value?
Also do I need to change the value in box 7 for total purchase to include the past purchases as well or leave it as quickbooks has calculated?
thanks
