Hello Mee1977,

For you to add VAT to your expenses, you'll need to turn on the Make expenses and items billable function. Here's how to do it:

1. Click the Gear icon in the upper-right corner and select Account and Settings.
2. Select the Expenses tab and go to the Bills and expenses section.
3. Mark the Make expenses and items billable box.
4. Mark the sub-functions if necessary and click Save. 
5. When you turn on the said function, it will also turn on the Track expenses and items by customer function. 
6. Choose OK and click Done.

After that, you can now add VAT when creating the expense transaction. 

I'll get back to you if you need more help with this.