I have a bar that went VAT registered on 1st Jan, so I need to reclaim the VAT on the stock held at that date, the client has provided the value of this stock (incl VAT). For the life of me I can't work out how to post it into Xero so that it hits the VAT return. Any clues on the transaction I need to post?
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A purchase invoice for negative [input VAT total] as the net and [input VAT total] as the VAT should give you what you need, if Xero lets you enter that.
I suppose the most correct way to do it is to amend all the individual purchases to include the VAT element but I wouldn't do that and nor should you, I would suggest just including a list of the stock with the VAT calculation on it as an attachment to the purchase invoice and calling it done.
Wouldn't do it that way as the value of inputs would be wrong.A purchase invoice for negative [input VAT total] as the net and [input VAT total] as the VAT should give you what you need, if Xero lets you enter that.