I am non vat registered but my supplier invoices have VAT on them. How do I enter that in the purchase invoice? By marking it as VAT it goes to VAT susp a/c - seems wrong

Hi @garywatts000 

You should be using No VAT code on every transaction.

I'm not sure but, when you registered for QBO, there was probably a tick box for VAT on/off.

According to

https://quickbooks.intuit.com/learn-support/en-uk/vat/turn-off-vat-field/00/238429 

& 

https://quickbooks.intuit.com/learn-support/en-uk/vat/we-de-registered-from-vat-on-31st-november-how-do-i-do-this/00/238657 

you cannot turn off completely once it's been activated.

Best you can do, tell QBO to ignore VAT on the entry forms.

• Click on the Company Cog in the top right hand corner.
• Select Account and Settings.
• Click Advanced from the left hand options.
• Under the section Accounting click the edit icon.
• Change Default tax rate selection to No VAT.

Now, when you enter a bill/expense you enter the full cost (with VAT) as your expense - QB logs all transactions as No VAT & puts the full amounts to P&L rather than 20% going to VAT Susp.

Hope this helps.