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February 12, 2022
Question

What is the difference between No VAT and OOS tax rates?

  • February 12, 2022
  • 1 reply
  • 0 views
Both these VAT rates mention that VAT will not be calculated. Could you please provide specific examples where to use one VS the other one?

1 reply

LieraMarie_A
February 12, 2022

Hi there, @user92803

 

These codes are the same. The transactions coded as No Vat and Out of Scope will not appear on your VAT returns. This includes anything you:

  1. Sell (or otherwise supply) when you're not registered for VAT – and you don't need to be registered.
  2. Buy or sell outside the European Union (EU).
  3. Sell (or otherwise supply) but not as part of your business – for example, if you occasionally receive income from sources such as leisure activities or hobbies.
  4. Buy and sell for your own personal use, such as a hobby.

 

Other goods and services outside the scope of VAT include:

  1. Donations to charity freely given by a business where the giver does not receive anything in return.
  2. Statutory fees and services – for example, MOT testing, congestion charge.
  3. Tolls for bridges, tunnels, and roads operated by public authorities.
  4. Low-cost welfare services provided by charities.

 

Additionally, you can add and delete tax rates in QuickBooks. These instructions can help you create the ones you need: How do I set up sales GST/VAT rates and use them on forms?.

Feel free to swing by anytime you need help with managing sales tax. I'm always here to help.