Expenses (Billing › Expenses)
The rule is simple: the amount is the total actually paid, including VAT.
- The amount I am typing — Includes VAT (the receipt total) is the default. Or choose Excludes VAT and VROOM adds the VAT and stores the total.
- VAT on this expense — use Work out 5% to calculate it from the amount.
- VAT can be reclaimed — switch this off for VAT the company cannot recover (for example, entertainment). That VAT stays part of the cost and is not claimed on the VAT return.
- The Breakdown line shows total paid, VAT, amount before VAT and recoverable VAT.
Synthetic example: a fuel receipt of AED 105.00 with VAT of AED 5.00 records a cost of AED 100.00 and input VAT of AED 5.00, paid AED 105.00 from Cash.
Older expenses: the filter VAT basis to review lists expenses recorded before this rule that carry VAT. Open each one, confirm the basis and save. Nothing is changed automatically.
Supplier bills (Billing › Bills)
Enter the supplier’s invoice lines with the account and VAT rate. An approved bill records what you owe the supplier. Bill payments clear that payable, rather than creating the same expense again. Bills with VAT are included in box 9 of the VAT return.
Drop-downs let you quick-add a supplier, a vehicle, a bank account or a new ledger account (the last two need accounting permissions).