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Feb 12, 2022 12:38 PM UTC
Question

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

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
Feb 12, 2022 4:26 PM UTC

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.